Business Trinidad & Tobago 2013

EDITORIAL BOARD & CREDITS

Business Trinidad & Tobago 2013 Editorial Board Richard Lewis

Chairman, Prestige Business Publications Ltd

Keith Miller

Chief Executive Officer, Caribbean Business Publications Ltd

Patricia Lewis

Director, Prestige Business Publications Ltd

Marie Gurley

Director, Prestige Business Publications Ltd

Yolande-Agard Simmons

Manager, Corporate Communications, Ministry of Trade, Industry and Investment

Ria Rullow- Bowyer

Communications Specialist, Ministry of Trade, Industry and Investment

Wade George

Tax Managing Partner, Ernst & Young Caribbean Ltd

Halima Y. Khan

Communications Officer, T&T Chamber of Industry and Commerce

Shurla Henry-Gibson

Manager, Marketing, invesTT

Karen De Montbrun

Company Director

K. Anthony Hosang

Managing Director, Fine Art Ltd

Kay Baldeosingh-Arjune

Editor

CREDITS Joint Publishers Editor

Design Layout & Artwork

Production Cover Design Photography

Printed By

Richard Lewis, Keith Miller Kay Baldeosingh-Arjune (kay.arjune@gmail.com) 809 Design Associates Inc. Soraya Gonsalves Patricia Lewis, Jessica Medina Cover Photos Patricia Lewis, Jessica Medina Refinery: Christopher Anderson Kelvin Thomas - Precision Design Studio Waterfront: Sarah Carter Edison Boodoosingh, Sarah Carter, Michelle Jorsling, Golf Course: Maria Nunes Maria Nunes, Patricia Lewis, Arthur Sukhbir Beach: Kelvin Thomas ScripJ

Business Trinidad & Tobago is published and produced by: Prestige Business Publications Ltd 9 Humphrey Street, The Film Centre, St James, Trinidad and Tobago Tel: (868) 622-0738/9 Fax: (868) 622-0426 Email: info@whoswhotnt.com Website: www.whoswhotnt.com

CopyrightŠ 2013 Prestige Business Publications Ltd All information in this publication has been carefully collected and prepared, but it is still subject to change and correction. Use these contents for general guidance only and seek extra assistance from a professional adviser with regard to any specific matters. Copyright reserved.

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2 • Business Trinidad & Tobago

From the Publisher

Keith Miller Chief Executive Officer – Caribbean Business Publications

Trinidad and Tobago has been by no means immune to the reverberations of collapsing financial institutions and currencies around the world, as precipitated by the onset of the international economic crisis in 2008.

However, some 14 years of sustained growth; a strong financial sector; stable government and society; an impressive savings buffer in the form of a Heritage and Stabilisation Fund; and a well-trained and enterprising human resource pool, have all combined to keep the T&T ship afloat in the turbulent international waters.

So, while the economies of Europe remain in deep financial stress, with the focus of recent discussions being on how to deal with the stark reality of governments being unable to pay back the national debt on their own (other than drawing upon hitherto untouchable public savings), the Trinidad and Tobago scenario appears to be quite different.

Richard Lewis The country has done well to secure and maintain its moorings during the last two years and is today enjoying the benefits of reasonably calm Chairman economic waters. In fact, when compared to the rest of the Caribbean, – Prestige Business Trinidad and Tobago is currently enjoying a rising tide and is well positioned Publications Ltd to venture forth in search of further economic growth.

This edition of Business Trinidad & Tobago highlights many of the elements that this very unique and special investment destination can provide, including: national programmes and initiatives already underway; major projects currently in the pipeline; the educational system that provides Trinidadians with free primary, secondary and tertiary education and produces world-class managers, professionals and technicians; the naturally creative and unique people that are the result of a unique, multiethnic, multicultural society; a blessed location in the tropics just outside the hurricane belt; and the bountiful supply of rich natural resources that continue to buoy the economy.

From the Government perspective, we have the Honourable Prime Minister, the Minister of Finance and the Minister of Trade & Investment informing investors about the good work that is being done in the public sector to enhance the country’s economic environment, improve business facilitation and kick-start new growth and development.

We then have the Private Sector, through its vibrant business chambers and associations, confirming that they are seeing significant changes and improvements. As further testimony to these positive trends, we have also invited a number of expats to tell us the story of their own happy experience of living and working in T&T (pg. 84).

In addition, a glance through a list of some of the many achievements of T&T businesses and nationals in 2012 (pg. 82), along with the wonderful photographs found throughout the publication, provide another means of relating the remarkable tale of this tiny, twin-island state.

Trinidad and Tobago is a relatively small and young nation but, as evidenced in the major areas of energy, energy-related industries, finance and banking, we are accustomed to performing above our weight in the global arena. There is no doubt that investors who have chosen to put their faith in this country since Independence have benefited significantly from this advantageous environment of national progress and achievement.

Today, with a government that remains committed to facilitating participation in all our growth sectors and a private sector continuously seeking out new opportunities, current indicators suggest that Trinidad and Tobago represents a very attractive option for new investment.

We are confident that over the next two years the T&T flagship will be picking up speed and, equipped with innovative, world-class technology and an increasingly skilled and confident crew, will sail successfully into the new, world economic order.

All bona fide investors are welcome to come on board and join us for what promises to be an enjoyable and rewarding ride.

Richard Lewis

4 • Business Trinidad & Tobago

Keith Miller

2013-2014

CALENDAR

Photo: Maria Nunes

April 2013

May 2013

• 1st Mar-31st Aug – Leatherback Turtle Watching in Tobago • 1st – Easter Monday • 7th – World Health Day • 10th-11th – Caribbean Digital Expo, Hyatt Regency Trinidad • 14th-16th – Humane Society International Animal Welfare Conference, Hilton Trinidad • 15th-18th – Caribbean Tourism Organisation (CTO) Sustainable Tourism Development Conference, Hyatt Regency Trinidad Website: http://www.onecaribbean.org/ • 20th-28th – Tobago Jazz Experience Website: www.visittobago.gov.tt/ jazzexperience • 26th-4th May – Point Fortin Borough Celebrations • 30th-3rd May – 1st International Conference on Quality Assurance in Higher Education, NAPA. Website: www.actt.org.tt

• 4th – St. Andrews Golf Club 17th Annual Corporate Golf Tournament Website: http://golftrinidad.com/ • 15th-16th - The Caribbean Facilities Management Conference & Expo, Hilton Trinidad.

Contact: Sharmin Boodoo – 637-6966 Ext. 252 Email: sboodoo@chamber.org.tt • 27th-29th - 3rd Annual Health and Wellness Expo 3013, Hyatt Regency Trinidad.

Contact: Eidetic – 665-6712/665-5994, Email: register@uhealthdigest.com • 30th – Indian Arrival Day • 30th – Corpus Christi • 31st-8th June – WeBeat Festival 2013, St James

6 • Business Trinidad & Tobago

June 2013 • 5th – World Environment Day • 10th-11th – Caribbean Investment Forum (CIF), Hyatt Regency Trinidad • 12th-15th – 14th Annual Trade & Investment Convention (TIC), Hyatt Regency Trinidad.

Website: http://tic-tt.com/ Contact: TIC Secretariat at 675 8862 Ext. 233 or 247 Email: ticsales@ttma.com or ticbuyers@ttma.com

• 15th-20th – Division of International Special Education & Services (DISES) International Round Table 2013, Magdalena Grand Resort, Tobago • 19th – Labour Day

July 2013 • 4th-7th – Commonwealth Medical Association Conference, Hyatt Regency Trinidad • 16th-1st Aug – Tobago Heritage Festival • 24th-28th – Great Fete Weekend in Tobago • 28th-4th Aug – Travel Professionals of Colour (TPOC) Conference, Hyatt Regency Trinidad

August 2013 • 1st – Emancipation Day • 1st – Arima Borough Day • 3rd – Arima Fest • 7th-11th – Santa Rosa Festival, Arima • 9th – Eid-ul-Fitr • 31st – Independence Day • 31st – Great Race from Port of Spain to Scarborough, Tobago * Public Holidays in light pink

2013-2014

CALENDAR

Photo: Maria Nunes

September 2013 • 17th-18th – Project Management Institute (PMI) Southern Caribbean Chapter (SCC) International Project Management Conference, Hilton Trinidad • 18th-1st Oct – 8th Annual Trinidad & Tobago Film Festival Website: www.ttfilmfestival.com • 24th – Republic Day • 24th-29th - Tobago International Cycling Classic • 27th – World Tourism Day

October 2013 • 7th – Chaguanas Borough Day • 8th-9th – ICATT’s Annual International Accounting & Finance Conference, Hyatt Regency Trinidad Contact: ICATT – (868) 623-8000 • 13th – Living Water Charity Golf • 14th-15th – Global Initiative for Emergency and Essential Surgical Care (GIEESC), Hyatt Regency Trinidad

8 • Business Trinidad & Tobago

• 18th-27th – Independent Order of Mechanics Conference, Hyatt Regency Trinidad • 24th – United Nations Day

January 2014

November 2013

• 3rd-4th – The Energy Chamber’s Energy Conference of Trinidad and Tobago, Hyatt Regency Trinidad.

Website: http://www.ttenergyconference.org/

• 3rd – Divali • 14th – Hosay Festival

December 2013 • 7th – St. Andrews Golf Club Men’s Christmas Hamper Golf Tournament Website: http://golftrinidad.com/ • 8th – St. Andrews Golf Club Ladies Christmas Hamper Golf Tournament Website: http://golftrinidad.com/ • 25th – Christmas Day • 26th – Boxing Day • 26th – 10th Annual Penta Paints Kite Flying Competition at Plymouth Recreation Grounds, Tobago

• 1st – New Year’s Day

February 2014

March 2014 • 1st Mar-31st Aug - Leatherback Turtle Watching in Tobago • 3rd – J’Ouvert • 3rd-4th – Carnival Monday & Tuesday Parade of the Bands (most offices closed) • 5th – Ash Wednesday • 30th – Spiritual Baptist Liberation Day * Public Holidays in light pink

CONTENTS

Contents 12

Message from The Honourable Prime Minister of Trinidad and Tobago Kamla Persad-Bissessar

52

Duty-Free Tobago!

Nicholas Hardwicke - President – Tobago Hotel & Tourism Association

14

Ease of Doing Business in T&T

56

18

T&T’s Divestment Agenda Kay Baldeosingh-Arjune Editor – Business T&T

Solar Energy for the Future Chris-Andy Gray - CEO – Solar Gray Ltd, Member – Trinidad and Tobago Chamber of Industry and Commerce

60

22

Financial Shared Services Hub – T&T’s New Horizon Wade George - Tax Managing Partner – Ernst & Young Caribbean Ltd Nassim Mohammed - Senior Manager Tax Services – Ernst & Young Services Ltd

Trinidad and Tobago’s Film Industry - Breaking New Ground Trinidad & Tobago Film Company

64

Couva – Proven Potential, Future Opportunities Sandra Chouthi

68

T&T’s Young Entrepreneurs – Shaping the Future Ian Ivey - Principal – NEXT Caribbean

72

invesTT – the One-Stop Shop for Investors Kelvin Mahabir - President – invesTT

75

Testimonial ASCO Trinidad Ltd

76

Commercial Attachés Can Help Open New Markets Larry Placide - Principal Consultant – Ideas to Business Ltd

78

Spanish – The First Foreign Language in T&T Nadine Roach - Secretariat Officer – Secretariat for the Implementation of Spanish (SIS)

26

Testimonial AmCham Trinidad & Tobago

28

Monetising University Research – A model for building a sustainable future for the Caribbean Prof. Clement K. Sankat - Principal - UWI, St Augustine Prof. Pathmanathan Umaharan Mrs. Stacy Richards-Kennedy

33

Testimonial Pan-American Life Insurance Group

35

Trinidad & Tobago’s Energy Sector – Investment Outlook Dr Thackwray Driver - CEO – The Energy Chamber of Trinidad & Tobago

82

Small Island – Big Achievements

38

Opportunities and Developments in the Agricultural Sector Trinidad and Tobago Agri-business Association

84

Loving Life in T&T Sharon Millar

40

Business Environment Improving in T&T Marc Sandy - Research Officer – Trinidad & Tobago Manufacturers’ Association

44

EDB/CCI Update Working Toward Greater Diversification and Competitiveness Dr Rikhi Permanand - Executive Director – EDB/CCI

89

Useful Information - Stock Market - Port Update - Fast Facts Guide - Trinidad Contact Information - Tobago Contact Information

48

Financing Development in Trinidad and Tobago David Dulal-Whiteway - President – Bankers Association of Trinidad and Tobago (BATT)

10 • Business Trinidad & Tobago

Message from The Honourable Prime Minister of Trinidad and Tobago

Kamla Persad-Bissessar

I am very pleased as Prime Minister of Trinidad and Tobago to be a contributor to this edition of Business Trinidad and Tobago, as we seek to promote our twin island Republic as the preferred place for investment.

At the crossroads of North and South America, Trinidad and Tobago enjoys and espouses the values of democratic principles.

Supported by a strong, stable and vibrant economy with a wealth of natural, human, and economic resources, we are uniquely well-positioned, not only as the world’s next leading business

12 • Business Trinidad & Tobago

destination for domestic, regional, and international companies, but also as the vital trade and investment link – a key regional transit hub – to the Americas.

The Government of the Republic of Trinidad and Tobago sees itself not as a competitor with the business community but rather as a facilitator of business ventures. We have created an environment that is enabling, friendly, responsive, and less bureaucratic to new businesses, investors, and entrepreneurs.

We recognise the critical roles that the private and business sectors play in the social and economic development of our nation – and indeed regionally and internationally – and we are committed to our partnerships with them.

Backed by over 100 years of experience in the oil industry, Trinidad and Tobago has, over these years, partnered with major global players in both the oil and gas industries and we are host to some of the world’s largest energy-based investments and some of the world’s largest companies in this field.

With a proven track record of Foreign Direct Investment, Trinidad and Tobago has earned a reputation as an excellent investment destination and has one of the highest Gross Domestic Products (GDP) per capita in the Caribbean and Latin America.

Marked by low inflation, steady growth, low unemployment, and a strong and stable financial sector, we can proudly lay claim to the fact that Trinidad and Tobago is potentially the financial centre of the Caribbean.

Our strategy is to generate new investments, re-energise the energy sector, facilitate private sector investments and encourage new financing for private and public sector initiatives.

Let me hasten to add that the ease of financial transactions is absolutely essential for the efficient conduct of business.

As such, I am pleased to say that, in Trinidad and Tobago, we have strong financial institutions and the government is totally committed to ensuring proper and more than adequate regulation of the financial sector.

Trinidad and Tobago can also boast of a respect for the rule of law, for our democratic traditions, workers’ rights, human rights, the environment and ethical practices.

All of these, among other things, provide the necessary environment that is conducive to trade and investment

Our strategy is to generate new investments, re-energise the energy sector, facilitate private sector investments and encourage new financing for private and public sector initiatives. opportunities. We are indeed an attractive destination for trade and investment and new business opportunities.

In this regard, my government, under the auspices of the Ministry of Planning and Sustainable Development, has identified six business clusters – Energy, Food Sustainability, Maritime, Tourism, Creative Industries and Financial Services – to drive its diversification targets.

The government is also actively pursuing the operationalisation of a National Innovation System of Trinidad and Tobago (NISTT) and National Innovation Policy, which we anticipate will act as a catalyst for increased innovation and be the driving force behind our economic sustainability.

Also a priority for the government, and being aggressively pursued, is improving the ease of doing business in Trinidad and Tobago. In this regard, a series of reforms are being engaged by government. These include: • Implementation of a Single Electronic Window (SEW) for Trade and Business Facilitation: This is an IT platform which became operational in February 2012 which links over 10 government departments in delivering key business related e-services (such as e-fiscal incentives; e-import/export licences and permits; e-company registration; e-work permits; and e-certificates of origin for exporters) in real time to the business community.

• Legislative Reforms: Several pieces of legislation such as the Companies Act, Fiscal Incentives Act, Value Added Tax, etc. are being amended so as to remove burdensome procedures and regulations that adversely affect the business community.

In January 2012, the Electronic Transactions Act was proclaimed into law, and this allows the State to now transact business electronically.

• Institutional Reform: In the early part of 2012, there were over 13 state agencies across various government ministries through which potential investors had to interact. In August of that year, the government streamlined the portfolios of each of these agencies and assigned investTT and the Enterprise Development Company Ltd – both subsidiaries of Evolving TecKnologies and Enterprise Development Company Ltd (eTecK) – with the role of the official Investment Promotion Agency (IPA) of Trinidad and Tobago. This will allow for a smoother

and better co-ordinated investment facilitation process.

As a nation, Trinidad and Tobago envisages a consolidation of our longstanding relationships with our traditional partners such as the United States of America, Canada, the United Kingdom, and our neighbouring CARICOM States.

It is also my government’s intention to expand and strengthen trade relations with Latin American countries given our most crucial geographical location as a veritable gateway to the Americas.

In this regard, Trinidad and Tobago signed a Memorandum of Understanding (and a Partial Scope Trade Agreement) with the Panamanian Government in 2012 which will see the export of propane, bitumen, natural gas, cement, ceramic and clay tiles, steel products and other goods to Panama under preferential tariff arrangements.

Additionally, negotiations on a Partial Scope Agreement with Guatemala have been completed and a proposal document – presently under legal review – has been finalised. Upon completion of the legal review process, both countries are expected to sign the Agreement.

Also on our agenda is El Salvador, with whom we will be looking to negotiate a similar agreement in the near future.

We also envisage trade and economic relations with a number of African and Asian countries whose economic activities are aligned to those of Trinidad and Tobago’s.

Considering the changing patterns in world trade and investment flows, Brazil, Russia, India, China, and South Africa also emerge as candidates for enhanced future engagements.

With access to regional and international markets, Trinidad and Tobago is determined to pursue its economic diversification process. We are indeed the preferred destination choice for business and investment as we offer low energy costs; we have an educated, skilled, and competitive workforce; access to a highly developed communications structure; access to fiscal initiatives; and no foreign exchange controls. These are but a few of the key reasons to invest in Trinidad and Tobago.

When we promote trade and investment, the inevitable outcome is shared prosperity. To all potential investors we say: Trinidad and Tobago is open for business! We are ready and we welcome your business.

Business Trinidad & Tobago • 13

Ease of Doing Business in T&T Minister of Trade, Industry & Investment Vasant Bharath

Former Food Production Minister Vasant Bharath initiated a number of long-needed measures in the Agricultural Sector.

In mid-2012, he brought that energy and focus to his new portfolio as Minister of Trade, Industry & Investment. He was also appointed Minister of State in the Ministry of Finance responsible for State Enterprises. In this Q&A with Business Trinidad & Tobago, Minister Bharath tells investors what the Government is doing to make it easier to do business in T&T. BT&T: You hit the ground running when you came to the Ministry with ambitious goals to make it easier to do business in T&T, such as reducing the time to set up a business to 3 days. What are those goals? What progress has been made so far in achieving them?

What other achievements can we expect in 2013/2014?

Minister: The ability of any economy to generate sustainable wealth rests in its ability to be more productive and hence internationally competitive. Trinidad and Tobago currently stands in 68th position out of 133 countries globally in the World Bank’s 2012 Ease of Doing Business Rankings, an improvement of 13 places from when this Government took office in 2010.

However, this is nowhere close to where we should be if we are to attract further investments and accelerate the transformation of the economy.

Over the past months, we have been pursuing a number of initiatives which have already begun to bear fruit. The Single Electronic Window for Trade and Business Facilitation (TTBizLink) was commissioned early in 2012 and currently provides a range of key business services electronically to the private sector according to predictable service standards.

TTBizLink currently delivers a suite of six e-services in the area of trade and business facilitation through 11 government departments and has managed to phenomenally improve the efficiency of the Government in these areas.

Our most recent notable success is that of the e-Company Registration Module which went live in October 2012. With this module we have reduced the processing time from seven days to three days.

Other successes include: • e-Work Permit: live from March 2012, processing time reduced from six weeks to 2.5 weeks • e-Import/Export Permits & Licenses: live from February 2012, processing time reduced from four weeks to one day • e-Certificate of Origin: live from February 2012, processing time reduced from one day to 30 minutes • e-Fiscal Incentives: live from February 2012, processing time reduced from six weeks to 11 days • e-Import Duty Concessions: live from February 2012, processing time reduced from six weeks to 12 days These achievements are being recognised by many quarters in the private sector and, indeed, many unsolicited testimonials have been pouring into the Ministry on a daily basis.

Phase II of TTBizLinK has begun and, on completion later this year, will see the Maritime Division of the Ministry of Transport offering services relating to Vessel Arrivals and Departures, completely electronically. This new e-Maritime module will also electronically link the Coast Guard, Immigration Division, Ministry of Health and the Ports so that Shipping Agents and Harbour Masters can interact with the government seamlessly through TTBizLinK. Additionally, a new module is being built for the Central Tenders Board of the Ministry of Finance and the Economy for the purposes of Contractor Registration for Tendering purposes, which will set the foundation for greater use of electronic procurement in Trinidad and Tobago.

The Government has also approved a major rationalisation of the number of steps and procedures to start a business in Trinidad and Tobago from the current 43 days to three days.

BT&T: Do you really believe that T&T can become one of the top 10 destinations in the world for ease of doing business in three years? Isn’t this more a statement for inspiration than realistic?

Minister: With certainty this is a realistic objective and, as with any SMART objective, it has stretch. It is, however, an objective that is attainable and measurable. Once we address the indicators used to measure a country’s Global Competitiveness

Business Trinidad & Tobago • 15

Investors can now receive an e-certificate of origin in 30 minutes, apply for and get an export or import licence in one day, and apply and get a work permit in less than three weeks.

Ratings, we will advance in leaps and bounds. So what we have been doing is supporting trade facilitation and investment promotion efforts.

BT&T: What investment promotion initiatives will you be seeking to implement in 2013/2014, and are there any specific business/ investment opportunities you particularly want investors to know about?

Minister: In respect of diversification of the economy, the Ministry of Trade, Industry and Investment has the leadership role in the attainment of the Government’s diversification objectives. Notably, we will focus on seven sectors, namely:Maritime, Downstream Energy, Food Sustainability, Creative Industries (film, fashion, entertainment), Tourism, Sports, and Financial Services.

In the maritime sector, we have established the Maritime Industry Development Committee and the Yachting Steering Committee, who are collaborating with the Ministry of Transport in the upgrading of critical legislation including the Shipping Bill and Harbours Bill, among others, to develop an institutional and regulatory environment for the industry. This is supported by a number of programmes to address the human resource needs of the industry.

In the food sector, the Food and Beverage Industry Development Committee has been working on developing the industry for export; a role that will continue in tandem with the mandate of the newly installed exporTT. In the creative sector, one that is dynamic and multifaceted, we will continue to provide support in spearheading economic development in film, fashion and music.

In the financial services sector, the establishment of the Trinidad and Tobago International Financial Centre sees us positioning ourselves as a premier location for firms involved in Financial Support Services.

BT&T: Why do you think an investor should choose T&T over other attractive investment locations?

Minister: Trinidad and Tobago enjoys one of the highest growth rates and levels of per capita income in the region.

We have a dynamic and powerful manufacturing sector, along with a strategic geographic location. We are situated below the hurricane belt. We have relatively cheap energy, good telecommunications, and a bright and innovative people.

As the most dynamic and industrialised nation in the English-speaking Caribbean, Trinidad and Tobago is poised for investment positioning as the destination of choice for business leaders. We also have keen marketing opportunities, presented to us through a range of trade agreements with the European

16 • Business Trinidad & Tobago

Union and Latin nations, including Cuba, Venezuela, Cost Rica, Columbia, Dominican Republic, Panama and, soon, Guatemala.

And as a Government, we will continue to provide the enabling environment and the stable economic climate conducive to maximising our investment potential.

BT&T: With invesTT supposed to be the one point of contact for investors, what is the role of the Ministry now, and how do you see it changing over the next three years?

Minister: If, as a country, we are to be seen as promoting investment, we thought that investment promotion should now be handled by one primary Agency - a vast diversion from the previous 13 Agencies, spanning various Ministries, who handled investment promotion. Could you imagine the frustration of a potential investor who had to traverse the slippery, and sometimes adversarial, slope of our local bureaucratic system?

Therefore, in a concerted attempt to streamline the investment approval process locally, the Government has designated invesTT as the National Investment Facilitation Agency of Trinidad and Tobago. invesTT will now be responsible for the client management for all major investments locally, which will reduce the burden of investors in dealing with the Government.

Concomitant with the restructuring of invesTT, will be the introduction of a streamlined process for constructions permit and utilities approvals. The Business Development Company Ltd has been restructured and rebranded as ExporTT to focus exclusively on building the competitiveness of firms to be export ready. The Ministry of Trade, Industry and Investment will therefore now focus its energies on improving the ease of doing business in the country as well as leading the diversification efforts of the Government.

BT&T: If you could have all the programmes and plans that you spoke of above implemented, how would T&T change as a result?

What would this economy and the business sector be like in five years? What is your vision of T&T in 2020?

Minister: The 2013 Fiscal Budget is appropriately titled “Stimulating Growth, Generating Prosperity.” It focuses on three main areas: Stimulating growth, which will result in increased revenues for the private and public sector; Refocusing government expenditure to create more value for money; and Building a competitive economy through focused investment and a targeted reform agenda.

This, in my opinion, paints the future for our economic and business landscape – that of a steady and healthy growth over the next five years, resulting in sustainable prosperity for all quarters of our population.

T&T’s Divestment Agenda

For the next two years, new Minister of Finance & the Economy Larry Howai is focused on: at least six state enterprise divestments, short-listed projects under the public-private sector partnership programme, development of the financial institution support services (FineSS) industry, and three key pieces of financial legislation.

Divestment From hotels, helicopters and energy companies to telephones, quarries and financial institutions - the Government of Trinidad & Tobago owns, wholly or in part, 56 companies covering a diverse array of sectors. Some of these assets present potentially attractive investment opportunities for both local and foreign investors.

But, in an interview in March 2013, Minister Howai told BT&T that he was Kay Baldeosinghproceeding carefully with the divestment process. So, athough in 2012, there Arjune were rumours of a number of state enterprises to be put on the divestment table, there are actually only three carded for 2013 - and these will be reserved Editor – Business T&T for local investors. At the end of the year, the Government will then review and decide on the next phase of divestment, said the Ministry’s Advisor to the Strategy Management Office (SMO) Jerry Hospedales.

The three state enterprises slated for initial public offerings (IPOs) on the T&T Stock Exchange in 2013 are: First Citizens Bank (FCB), Home Mortgage Bank (HMB) and the Trinidad & Tobago Mortgage Finance Company (TTMF).

This year, only 20% of FCB will be offered to investors with the IPO scheduled for June 2013. HMB and TTMF will be merged and restructured and then 49% of the new entity put on the stock market in August 2013.

This will improve the supply of mortgage finance, the Minister said. Noting that liquidity is only temporary, he said: “We are building the institution and the structure that will support the market over the long-term, and get the money out of the locked mortgages.” The IPOs and future divestments will also “spur some activity in the stock exchange and give people some more options,” he said.

The Finance Minister, who left his position as CEO of First Citizens Bank in June 2012 to take up his new portfolio, is putting high priority on communication with stakeholders, dealing with their concerns and suggestions, and laying a broad understanding of what he is trying to do and the impact it will have on the country.

“We will revisit the (divestment) programme at the end of this year to see what we will do next year,” he said. Noting that he had identified a number of potential enterprises to divest, he said: “We are in discussions with all the stakeholders to determine, first of all, whether we will go ahead, and the timing.”

The Export-Import Bank of Trinidad & Tobago was one of the state enterprises being considered for early divestment. “We had also looked at the EXIMBANK but based on feedback, we are looking at a different approach,” the Minister said. “We have a good sense of what they want to do. We talked to the trade union, we talked to management, and we are now looking at a different way.”

18 • Business Trinidad & Tobago

Photo: Edison Boodoosingh

“When you start to talk to the stakeholders, some of the possibilities and potential that exists for developing the sector come out. You can identify more properly what could work.”

– Minister of Finance & the Economy Larry Howai

and infrastructure, and was awaiting feedback on these at the time of the interview. Some of the PPPs may need a skills set we do not have immediately available, he said, and noted as examples, construction of an Oncology Centre and airport development.

According to the Government’s Medium-Term Policy Framework 2011 – 2014 entitled Innovation for Lasting Prosperity: “Collaboration between the Government and the private sector in the provision of key services will be advanced through the use of the PPP model for delivery of suitable infrastructure projects. The objective is to alleviate infrastructure bottlenecks in Trinidad and Tobago and expand access to effective and efficient infrastructure and infrastructure-related services through the application of PPP models…It is expected that in developing and implementing these pilot PPPs, the technical, managerial and institutional capacity to design and manage PPPs will be developed and embedded within key Government Ministries and Agencies.”

Minister of Finance & the Economy Larry Howai

He explained: “When you start to talk to the stakeholders, some of the possibilities and potential that exists for developing the sector come out. You can identify more properly what could work. They are close to the sector and could identify more opportunities.”

As to the reasons for divesting: “We’re doing this because we are expecting it will lead to greater effectiveness in delivery of services the institution provides as well as greater efficiency in the use of resources and better generation of returns to the community at large,” Minister Howai explained. We are looking at it with those objectives in mind seeing then what is the best structure. “Ownership will be in line with whatever is the best structure to achieve that,” he said.

The timing of the divestments is also a key factor so that the programme is conducted as efficiently as possible on a wellmanaged timeframe, he noted. “It is important to let investors know what is coming” but we do not want to put things on the market hard on the heels of each other and send up the cost of underwriting or have investors reach their portfolio limits and then cannot take up the offer, the Minister explained. For each issue, we will do a market read. He also noted that the Government wanted to give preference to the National Insurance Board (NIB), employees and institutional investors.

T&T established a formal divestment framework in 1993.

Past divestments have taken the approach of seeing the widest possible ownership with preferential allocations given to institutional investors such as the Unit Trust Corporation, pension funds, the NIB, employees and small investors.

We have about 12 enterprises in mind for divestment but we have to engage in discussions with stakeholders before we make it public. We are starting those discussions in April 2013, the Minister said.

Public-Private Partnerships The nearer term opportunity for international investors may be through PPPs, Minister Howai noted. He has put 12 possible PPPs before Cabinet in the areas of health, transport, tourism

20 • Business Trinidad & Tobago

Shared Services Hub The Finance Act (2013) passed in January will facilitate the creation and formalisation of the financial institution support services industry (FineSS). The Minister can already boast of early successes. Scotiabank is setting up a regional back office processing centre in Chaguanas and the Trinidad & Tobago International Financial Centre (TTIFC) has signed a Memorandum of Understanding (MOU) with Pan-American Life Insurance Group to set up a similar centre. We will also go to Sagicor and Guardian Holdings, the Minister said.

Even in advance of the Finance Act, RBC Royal Bank saw the advantages Trinidad offered and opened its $35 million London Street, Port of Spain Operations Centre in May 2012.

“With improved processes, this new centre is a critical support base for our expanding Personal Banking and Business Banking units across the Southern Caribbean and eventually, the entire Caribbean,” RBC Caribbean CEO Suresh Sookoo said at the Centre’s official launch in November 2012.

The Minister projects the creation of 3,000 jobs in this sector over the next five years.

Upcoming Financial Legislation With the Securities Industry Act and the Finance Act 2013 already passed, and the Insurance Act expected (at the time of printing) to be laid soon, the next two pieces of financial legislation on the Minister’s agenda are: The Credit Union Bill – to be introduced in Parliament in the last quarter of 2013 The Pension Reform Bill – slated for early 2014.

Useful links: www.finance.gov.tt/content/State-Enterprises-InvestmentProgramme-2013.pdf www.finance.gov.tt/content/state-enterprise-company-portfolio. pdf www.finance.gov.tt/content/Medium-Term-PolicyFramework-2011-14.pdf

The cost of processing compares favourably to countries such as Canada, USA and Barbados – Scotiabank T&T Ltd. Scotiabank’s Caribbean South Hub Scotiabank is consolidating its financial services processing throughout the Caribbean, in Trinidad, with the creation of a shared services hub to satisfy local and regional operations.

In a statement to Business Trinidad & Tobago in March 2013, the bank said the Caribbean South Hub, located in Chaguanas, was a concept that began in 2009 and presently supports operations for Scotiabank in 11 English-speaking countries in the Caribbean.

The Hub provides support functions, accounting controls and other operational services for the Scotiabank network in the Eastern Caribbean, inclusive of Trinidad and Tobago. Support includes the processing of payments, loan adjudication and fulfillment, operational advice, database management, human resource management support, reconciliations, collections from delinquent customers and the roll out of operational projects.

Scotia said that, where possible, the hub would also take over aspects relating to Insurance as well.

The bank embarked upon the expansion of the hub in Trinidad due to favourable Government policies that were the necessary catalysts for investment, it said, adding: “The existence of a telecommunications network with the capacity to support cross border operations is also a great benefit to the establishment of the hub, but the most important factor is the availability of a diverse and skilled workforce and a favorable rate of exchange. The cost of processing compares favourably to countries such as Canada, USA and Barbados.”

While the cost of operations in the Dominican Republic is highly competitive “within the Eastern Caribbean, and particularly with English as the common language, Trinidad and Tobago is the preferred location,” the bank said.

The Hub would bring numerous new opportunities as it evolves, both economically and socially, Scotia said: “It creates employment and increases the overall productive and wealth capacity in the country. It also provides for the development of the human resource skills in the country thereby providing more capable managers and more skilled employees that will redound to the development of local talent.”

T&T is already acknowledged as a regional financial centre… is well-placed to attract potential investment in the financial institutions support services industry.

Wade George

Nassim Mohammed

Tax Managing Partner – Ernst & Young Caribbean Ltd

Senior Manager Tax Services – Ernst & Young Services Ltd

Financial Shared Services Hub – T&T’s New Horizon The Government has introduced incentives to encourage the development of centralised service hubs in the financial sector. In this article, Ernst & Young Tax Partner Wade George discusses the incentives introduced and why T&T is well-positioned to become a successful hub.

The Minister of Finance and the Economy, in delivering the Budget Statement on October 1st 2012, signaled Government’s intention to incentivise the building of centralised service hubs to support the financial services sector.

This involves the consolidation by financial institutions of national and

22 • Business Trinidad & Tobago

Photo: Maria Nunes

regional back office operations in Trinidad and Tobago (T&T).

In the circumstances, such enterprises will provide services to customers in T&T as well as the wider region. These operations may include data base management, accounting, legal, HR support and credit card processing, among others.

The development of the financial institutions support services industry must be viewed in light of the continuing dependence of the T&T economy on the petroleum sector, which contributed approximately 43.7% of Gross Domestic Product (GDP) in 2012.

In this regard, the financial sector has been identified as a focus for the continuing effort to diversify the economy, bearing in mind that it is already the fastest growing sector of the economy and, by some estimates, directly employs over 50,000 persons.

T&T is already acknowledged as a regional financial centre and, as a result, a few multinational financial institutions have located their regional headquarters in T&T. Further, many local financial institutions are expanding their regional reach

through mergers and acquisitions. In addition, T&T has several advantages when compared to potential regional competitors for such business including: (i) Availability of skilled manpower; (ii) Availability of relatively good telecommunications infrastructure; (iii) Relatively low energy costs; and (iv) Location below the hurricane belt.

In the circumstances, T&T is well-placed to attract potential investment in the financial institutions support services industry.

The development of the industry is expected to generate substantial benefits to the local economy including: - The absorption of the continuing flow of skilled workers from tertiary educational institutions - The creation of approximately 3,000 good quality jobs for knowledge workers and, taking account of the multiplier effect, some 6,000-12,000 total jobs

Business Trinidad & Tobago • 23

Shared services centres will be exempt from Corporation Tax, Business Levy and Green Fund Levy on profits and receipts arising from the exportation of services.

-

An immediate and positive impact on Gross Domestic Product (GDP) - Positioning T&T as an attractive destination for locating back office operations for financial institutions Having regard to these benefits, the Trinidad & Tobago International Financial Centre Management Company Ltd (TTIFC) took the initiative to develop the financial institutions support services industry in T&T and to engage in discussions with financial institutions with a view to establishing their shared services operations in T&T. The TTIFC recognised, however, that the country’s position would be enhanced through the establishment of an appropriate legal and incentive framework for the industry.

In his Budget Statement, the Minister of Finance and the Economy recognised the need to act quickly and decisively in light of the international competition for such businesses, and proposed to introduce legislation with associated tax incentives early in fiscal year 2013 to support the development of the financial institutions support services industry. The Minister was able to fulfill his promise with the enactment of the Finance Act, 2013 in January 2013. It is also our understanding that certain complementary VAT incentives would be granted to the industry by order pursuant to the VAT Act (the Proposed Order).

The Finance Act, 2013 - together with the Proposed Order contain a package of incentives to promote the development of the financial institutions support services industry in T&T. The measures do not, however, create an entirely new incentive framework for the industry but, instead, utilises the existing Free Zones regime under the Trinidad and Tobago Free Zones Act. In this regard, the T&T Free Zones regime was designed to encourage local and foreign investment in export-driven projects that create jobs, develop skills and create external markets for products and services. Such investors benefit from various fiscal incentives provided for in the relevant legislation.

Based on the provisions of the Trinidad and Tobago Free Zones Act; the Finance Act, 2013; and the Proposed Order; the benefits available to shared services centres that are established in the Free Zone will include the following: Exemption from Corporation Tax, Business Incentive Levy, Green Fund Levy As approved enterprises in the Free Zone, Details shared services centres will be exempt from Corporation Tax, Business Levy and Green Fund Levy on profits and receipts arising from the exportation of services.

The shared services centres would, however, be required to pay Corporation Tax, Business Levy (where applicable) and Green Fund Levy on income sourced from T&T.

24 • Business Trinidad & Tobago

Incentive Details

Incentive Details

Incentive Details

Incentive Details

Value Added Tax (VAT) Relief Certain specified back-office services supplied by approved Free Zone enterprises to financial institutions in T&T will be zero-rated for the purposes of VAT. Exported services are currently zero-rated under the provisions of the VAT Act. Goods supplied to the Free Zone are also zerorated for the purposes of VAT. Exemption from Withholding Tax The Trinidad and Tobago Free Zones Act exempts from Withholding Tax dividends and distributions arising from activities in the Free Zone and remitted to non-residents.

Further, payments in respect of services rendered by non-residents to approved Free Zone enterprises are not subject to Withholding Tax. Exemption from Customs Duties The shared services centres will be able to import, free of Customs Duty, into the Free Zone, all capital goods, spare parts, raw materials and other articles for use in the Free Zone as well as building materials for the construction of premises.

Exemption from Property Taxes Under the provisions of the Trinidad and Tobago Free Zones Act - land, buildings and improvements thereto as well as plant and machinery are exempt from Land and Buildings taxes and any other rates and taxes on such assets.

Based on the above, the incentive framework available for shared services operations in support of financial institutions is quite beneficial. In this regard, it is noteworthy that the Minister of Finance and the Economy, in his Budget Statement, indicated that the TTIFC has already executed a Memorandum of Understanding with one bank that would result in a new investment of approximately TT$100 million and the employment of 200 persons and that negotiations were currently ongoing with two other financial institutions to locate similar facilities in the country. In the circumstances, early indications suggest that the positive attributes of the T&T business environment, in tandem with the recently enacted tax incentives, are likely to enhance the country’s lure as a competitive international financial shared services hub.

TESTIMONIAL

AmCham Trinidad & Tobago Trinidad and Tobago’s political stability, high literacy level and independent judiciary combine to make the country an attractive investment location.

26 • Business Trinidad & Tobago

Twenty years ago, in recognition of the fact not only that the U.S. has a dominant place in the global economy but that it is Trinidad and Tobago’s #1 trading partner, with significant potential for mutually beneficial relations, AmCham T&T was established by a small group of visionary businessmen. The benefits of this vision, even with the advent of globalisation and recent economic and financial strictures worldwide, are a matter of public record.

AmCham T&T’s membership represents 90% of Foreign Direct Investment (FDI) in T&T. With our parent organisation, the Association of American Chambers of Commerce of Latin America and the Caribbean (AACCLA), which comprises 22 sister AmChams, we represent over 80% of US investment in the region. While a substantial portion of this FDI in T&T is in the energy sector, there have been spin-offs into other areas in that “rents” from this “offshore economy” have served to fuel development in the manufacturing and services sectors.

The value proposition of AmCham T&T includes leveraging its association with the Association of American Chambers of Commerce of Latin America (AACCLA) and the U.S. Chamber of Commerce and its relations with foreign Missions in Trinidad and Tobago to assist in the expansion of trade beyond local and Caricom markets to the hemisphere. Further, AmCham T&T is a resource organsiation for local and foreign companies in their conduct of due diligence when considering investing, whether independently or in partnership arrangements.

T&T continues to be an attractive FDI location for the US and other countries. The general feedback from our visitors and investors has been positive as the Government continues to work on reducing the negatives regarding doing business in Trinidad and Tobago which adversely affect the country’s competitiveness. Trinidad and Tobago’s political stability, high literacy level and independent judiciary combine to make the country an attractive investment location. Generally, expatriates feel comfortable living and working in Trinidad and Tobago, and many leave with fond memories of our friendly people and country, with promises to return.

Business Trinidad & Tobago • 27

UW I’s Cocoa Research Centre, regarded as the oldest cocoa research entity in the world, is poised to develop one of the first technology/business incubators in the Caribbean to nurture the development of a cocoa value added industry.

Monetising University Research

– A model for building a sustainable future for the Caribbean In this article, UWI Principal Professor Clement Sankat and his co-authors discuss the enormous potential of effective universitygovernment-private sector partnerships to transform the economy by helping to revitalise struggling industries, solve technological problems, create new products and open up new business opportunities.

In 2012, the University of the West Indies, St. Augustine Campus, established a Research and Development Impact Fund (RDI Fund), with resources provided by the Government of Trinidad and Tobago, to deploy UWI’s machinery (human capacity, facilities, etc.) in support of applied research focused on commercialisation and impact.

A primary objective of the RDI Fund is to develop sustainable industries that could take Trinidad and Tobago into the future. One of the grants awarded was for the development of a horticultural industry based on the Anthurium.

Opportunities in Anthuriums – T&T’s comparative advantage The tropical ornamental market in the USA is valued at over US$2 billion.

Anthuriums are indigenous to the northern part of South America and the Southern Caribbean, however, the global industry is supported by the Netherlands and Hawaii. The proximity of the Caribbean region to the USA, a thriving tourist industry in the region, indigenous diversity, and the low cost of production provide the region with a comparative advantage.

However, the susceptibility of Anthuriums to tropical diseases (Anthurium bacterial blight and bacterial leaf spot as well as nematode decline) led to the decline of a once thriving industry in the late 1990s.

There is potential for reviving the industry.

Over the years, UWI’s research team has developed plants with resistance to bacterial diseases in a high yielding background and is involved in expanding the colour range Prof. Pathmanathan through genetic technologies. It is also Umaharan looking at direct marketing opportunities employing e-marketing to further improve the profitability of the flowers.

These initiatives will not only provide a comparative advantage for growers in the region, but allow the development of a

Photo: Arthur Sukhbir

Prof. Clement K. Sankat Principal - UWI, St. Augustine

Mrs. Stacy RichardsKennedy

Business Trinidad & Tobago • 29

Professor Pathmanathan Umaharan, has been doing work on creating coloured anthuriums.

Photo: Arthur Sukhbir

tropical Anthurium planting material industry to support tropical Anthurium production globally.

The feasibility of developing a business cluster around the Anthurium industry in the Caribbean has also been investigated. If successful, this will provide a lucrative horticultural cluster that could not only supply the North American market, but also the thriving Caribbean tourism market, with tropical anthuriums providing sustainable employment for many.

Herein lies an example of how UWI, through research and development (R&D), can make a big difference to a struggling industry. But R&D alone will not suffice; a supportive agricultural policy environment, that is sustained over time and adequately resourced, is also a pre-requisite.

The missing ingredient – the Private sector Many countries have shown that commercialisation is best left to private enterprise. However, with some exceptions, the private enterprise in the region has not been very entrepreneurial, and most businesses continue to operate and prosper in the paradigm of the bygone era. Knowledge investment, therefore, has not been the domain of the business sector. New businesses will likely emerge from young entrepreneurs.

In the past, development of ideas has been largely the responsibility of academia. Capturing the ideas from a wider public and nurturing them in an incubator setting is essential to support development.

The Government’s i2i programme is an innovative programme that seeks to capture novel ideas from a wide cross-section of citizens, and nurture them within existing knowledge institutions through research and development support.

One of the limiting factors for commercialisation of these ideas has been the lack of funding for technology validation, upscaling and business incubation prior to commercialisation. Often the private sector becomes interested only at the end of this process, where the risk of investment is relatively low, compared to an early stage technology.

Universities and technology institutions must develop technology/business interfaces such as industrial parks, incubators, accelerators, etc. to support the involvement of the private sector and ensure that commercialisation of new research findings coming out of applied university research is facilitated.

To encourage private sector involvement in commercialisation and enterprise development, intellectual property rights must be obtained for novel products and processes to ensure that the investing businesses have a clear comparative advantage. In addition, flexible business models for university-private sector collaboration, including licensing arrangements, should be developed.

30 • Business Trinidad & Tobago

The University of the West Indies, Main Administration building.

The government’s role is to provide an enabling environment for investment, such as incentives for venture capitalists to invest at the pre-commercialisation stage, tax holidays for spin off companies, and incubator support services or incubator support grants for companies, within the context of a macroeconomic development plan.

There are signs of movement in this direction as the UWI Arthur Lok Jack Graduate School of Business - with the support of Microsoft, eTecK, First Citizens Bank and the National Entrepreneurship Development Company (NEDCO) - has just launched a business incubator service “BizBooster” to support the development of new entrepreneurial companies.

Cocoa Innovation The Cocoa Research Centre of UWI (CRC) is poised to develop one of the first technology/ business incubators in the Caribbean to nurture the development of a cocoa value added industry.

CRC is regarded as the oldest (82 years) cocoa research entity in the world. It gave cocoa and cocoa technology to the world during its early incarnation under the Imperial College of Tropical Agriculture (ICTA). Following the country achieving Independence in 1962, it established the largest genebank in the world, a collection of cocoa varieties from its birthplace – the Amazon region.

CRC is also developing genomic tools to support the accelerated improvement of varieties for yield and resistance to diseases to improve the profitability of cocoa production in the region. Trinidad and Tobago is also well-known for the premium quality of cocoa beans it produces (along with some of the other Caribbean islands).

Using this genetic resource base, CRC has embarked on developing novel quality chocolate products as well as nutraceutical products from cacao. It is planning to establish a model farm, chocolate incubator and chocolate school, as well as a local chocolate museum. These will serve as a stakeholder interface to support the development of niche, branded, valueadded products capable of enjoying a high market value and supporting the cocoa industry as a whole.

Small island developing states in the Caribbean have suffered tremendously in a globalised world because of small scale as

32 • Business Trinidad & Tobago

Photo: Arthur Sukhbir

well as the high cost of land, labour and inputs, including high transportation costs. Development of sustainable industries require careful prioritisation based on potential comparative advantages, market premium and ability to access niche exclusive markets. R&D should focus on reducing risks, cost of production and improving the ability to access exclusive niche markets.

But building a research capacity requires sustained support: leadership with a passion for what they do, dedicated funding and human resource capacity, infrastructure, partnerships and networks of support. Accountability of our institutions for the R&D effort, the matter of ownership of intellectual property rights, and incentives for research excellence and productivity are also important ingredients.

Competitive Research and Development Funding While there may be dedicated funding for individual tertiary institutions, there is no national competitive funding scheme in Trinidad and Tobago to support research and insufficient attention is being paid to broad R&D needs that would support industrial growth and development. If we would like to position Trinidad and Tobago among the emerging global players from the South such as Brazil, India, South Korea and South Africa (to name a few), our investment in R&D is woefully small. A renewed effort by both the public and private sector is required here.

We have invested in numerous higher education and technology institutions; however, the full potential of these institutions is not harnessed to bring about the holistic development of the region. One of the means of harnessing this latent capacity is to develop competitive research grants that can mobilise R&D in these institutions around priority sectors and bring together a host of players - university, industry boards, the private sector, government, financial institutions etc. - in business clusters for the development of Trinidad and Tobago and the region.

If managed properly, the Caribbean can take its rightful place as equal partners in a knowledge-driven world in the near future.

To achieve this, we must continue to build effective universityprivate sector-government R&D partnerships and work in unison towards a better future for all.

TESTIMONIAL

Pan-American Life Insurance Group Miguel Sierra

The Pan-American Life Insurance Group is the newest member of the insurance industry in T&T and Miguel Sierra, Managing Director – Caribbean Operations, tells BT&T why the Group chose to expand into T&T and what he’s enjoying about life here.

Who is PALIG? PALIG is a leading provider of insurance and financial services throughout the Americas. The Group has been delivering trusted financial services since 1911, employing more than 1,300 worldwide, providing top-rated life and health insurance, employee benefits and financial services in the United States, Puerto Rico, and the U.S. Virgin Islands.

The Group’s member companies offer individual and/or group life and health insurance throughout Latin America and the Caribbean. The Group has branches and affiliates in Costa Rica, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, and 15 Caribbean markets, including Barbados, Cayman Islands, Curacao and Trinidad and Tobago.

Why did PALIG decide to come to T&T and when?

In August 2012, PALIG acquired MetLife assets (Algico/Alico) in the Caribbean. This purchase accelerates Pan-American Life Insurance Group’s strategy to become the premier life and health insurance provider in the Andean, Central American and Caribbean regions. It also presented a unique opportunity to acquire assets that fit well into our business strategy and complement our existing operations in the region. Furthermore, Trinidad & Tobago, Panama and Costa Rica are markets that

have shown above average GDP growth, and offer very stable investment and currency climates. The islands of the lower Southern Caribbean are also recognised for having among the highest GDP per capita rates in all of the Americas.

What has the experience been so far?

We have gotten great feedback and a warm reception from the business community, insurance industry, and regulators.

We have worked closely with MetLife over the past year to ensure a smooth transition and uninterrupted service for all customers. So far, so good.

What is the outlook for the future?

The future looks very bright. We believe in the growth potential in the life and health segments of the insurance industry in Trinidad.

What do you personally like about living in T&T? Living in Trinidad is a fantastic experience. The country has a rich and diverse culture, amazing food and exploring that has been a treat. This Carnival season was my first one and I enjoyed it immensely. I feel very much at home here. I tell my staff all the time, I consider myself a local now!

What do you find special or unique about T&T? I think T&T gives a unique dimension to the term “melting pot” because the manner in which the different cultures here interact is very specific and sets the country apart from other islands in the Caribbean, and certainly from other places that I’ve lived, even though many of them are also diverse in their own ways.

Business Trinidad & Tobago • 33

Trinidad & Tobago’s Energy Sector – Investment Outlook The outlook is bright for the local energy sector, with Government expecting up to US$9 billion in investment between 2013-2015.

In this article, the Energy Chamber reports on projects in train as well as T&T initiatives to export services and invest in external markets.

The oil and gas sector in Trinidad & Tobago is set for high levels of investment over the next three or four years. Government estimates place the overall level of investment as high as US$3billion per annum for 2013 through to 2015. This would represent record levels of investment into the sector, far in excess of previous annual records.

Upstream Investment Dr Thackwray Driver After a very sharp slowdown in drilling activity from late 2008 through to 2011, there has been a significant return to drilling offshore and across CEO – The Energy south Trinidad. This is set to continue over the next few years with both Chamber of Trinidad exploratory drilling in new acreage and development drilling of existing & Tobago reservoirs to maintain production. The fiscal reforms introduced in 2012 have positively impacted the economics of some smaller oil reservoirs off Trinidad’s south west coast and both Repsol and especially Trinity (who finalised their acquisition of Bayfield’s assets in February 2013) have active drilling campaigns for both infill wells from existing platforms and new appraisal drilling.

Asset maintenance, gas compression, upgrades of existing facilities and additional development drilling activities will be undertaken by bpTT, BG T&T and EOG Resources operating off Trinidad’s east and north coasts. The improved seismic data collected during 2012 is helping to identify recovery improvement opportunities and new reservoirs on existing acreage. The next few years will also see an extensive seismic data gather exercise taking place in the six recently allocated deepwater blocks, two with bp and four with BHP Billiton, eventually leading to exploration drilling.

Onshore and in the Gulf of Paria, Petrotrin, the State-owned oil company, has increased its drilling activity over the past year and has aggressive drilling campaigns planned over 2013 and 2014. The South West Soldado reactivation project was commenced in 2012 and is set to continue over the next few years, including new drilling, workovers of existing wells, and extensive investment into pipelines and other infrastructure. Onshore Trinidad, the smaller independent oil companies are continuing with their drilling activities and have been successful at bringing on increased production.

In 2013, additional acreage is being made available to oil and gas companies through an onshore bid round with four blocks in the south and east of Trinidad on offer, and an offshore bid round that will include both shallow and deepwater blocks.

Midstream Investments At least two and possibly three gas export projects are in the pipeline. The mid-sized La Brea LNG plant has been given a provisional go ahead to begin the planning and pre-construction approval for eventual construction in La Brea. The project, with an estimated capital cost of around US$400 million, will target exports of LNG to Caribbean markets, in particular the two French islands of Martinique and Guadeloupe.

Business Trinidad & Tobago • 35

Trinidad & Tobago companies have been actively pursuing energy sector investment opportunities in external markets.

There is also a major investment from Centrica that has been given a green light to export gas from Block 22, north of Tobago, also destined for Caribbean markets. The details of this project have not yet been publicly announced, but media reports suggest it will involve a compressed natural gas facility with an export terminal in Tobago. This represents an unprecedented energy sector investment on the island of Tobago.

The final planned gas export project is the long awaited gas pipeline to Barbados which, according to its sponsors, has cleared the major Governmental approval hurdles and negotiations for the gas contracts are underway.

In addition to these investments in new facilities, the National Gas Company will continue its programme of investment into the country’s pipeline network to improve overall delivery of gas.

Downstream Investments The past few years have seen a number of downstream projects in the country either significantly delayed or cancelled.

However, there are now a few new projects that look like they have a good chance of moving into the construction phase.

The most significant new downstream project is the Mitsubishi and Neal and Massy methanol and DME project, planned for La Brea, with a capital investment of around US$850 million.

A gas term sheet for the project has been initialled and a full project agreement is being finalised. It is anticipated that construction will get underway in 2014, once the project clears the environmental clearance process.

Neal and Massy is also working on plans for a steel plant and rolling mill project with a partner, Metal Dom, from the Dominican Republic. The plant would have a capital investment of US$114 million and produce a variety of steel products.

The other new downstream project in the planning stage is a plant to produce resins, veneers and board, using melamine purchased in Trinidad and wood imported from Suriname. The project being developed by Chemtech Ltd. has an estimated capital investment of around US$200 million.

In addition to these projects that are fairly well advanced in the project development cycle, the Government of Trinidad & Tobago has also recently embarked on a feasibility study for the creation of a world-scale photovoltaic cell manufacturing cluster. The study, funded by invesTT and led by a local project development company SiTeck, will assess the feasibility of the concept and determine if it is worth pursuing investors in this sector.

Finally, the massive AUM II project planned by MHTL for Point Lisas is still being actively pursued. The environmental permitting process for plant construction has been initiated, though the final decision on the shareholder arbitration, which has delayed the project, is still outstanding.

36 • Business Trinidad & Tobago

Energy Services and Outbound Trinidad & Tobago Investment In addition to these inbound investment activities, Trinidad & Tobago companies have been actively pursuing energy sector investment opportunities in external markets. This includes investments into a range of different areas by both private and State-owned companies. The latter’s potential investments into various African countries have received quite a lot of public attention, but private companies have also made, or are planning, investments in external markets. This spans investments in energy services for shale gas and oil in the USA to plans for biofuel production in Guyana, and active projects to seek investments in electricity generation in Africa.

There has been a particular emphasis placed on the potential for service exports to Guyana, Suriname and French Guiana (the Guyanas). Offshore drilling campaigns in those countries over the past few years have been directly supported out of the existing Trinidad logistic ports. The NEC logistic port under construction in Galeota is also being targeted at the potential market for supply vessels to support the offshore industry in the Guyanas.

The Energy Chamber continues to assist its member companies in accessing potential markets for energy services in the region and in Africa and a 2013 trade mission is planned for Suriname.

In addition, the Energy Chamber will seek to operationalise the Memorandums of Understanding signed with both the Regional Government and Chamber of Commerce in French Guiana and the Sekondi-Takoradi Chamber in Ghana’s western region.

Investing in people Finally, the energy sector in Trinidad & Tobago will continue to make major investments into the development of strong health, safety and environmental systems and in developing the competency of our labour force. In the energy services sector, the Energy Chamber will continue to support contractors to invest in world class HSE management systems certified through the Safe to Work (STOW) initiative. Currently, there are approximately 140 STOW-certified high-risk contractors with a target of 200 to be certified by the end of 2013.

The Energy Chamber, working with the National Training Agency, will also continue to assist its service company and contractor members in their investments into competency assurance systems through the Energy Industry Competency Development Initiative (EICDI). This system will ensure that companies’ workforces are certified as being competent to undertake tasks in the energy sector.

Further information can be obtained from the Energy Chamber of Trinidad & Tobago at www.energy.tt. (1-868-6ENERGY).

Interested investors are also encouraged to attend the Trinidad & Tobago Energy Conference 2014, which will take place on February 4th-5th 2014 at the Hyatt Regency Hotel, Port of Spain (see www.ttenergyconference.org).

Opportunities and Developments in the Agricultural Sector of T&T

The agri-business sector of Trinidad and Tobago provides a firm platform for economic diversification and enhanced food and nutrition security.

Sector advances are taking place within the context of meteoric developments in technology and evolving consumer preferences informed by globalised tastes. Existing opportunities are a function of the responsiveness of stakeholders within the agricultural sector to adapt to changing consumer tastes, namely, the increasing demand for convenience foods, flavour profiles and product portfolios on par with global brands.

The Trinidad and Tobago Agri-business Association (TTABA), recognising the commercial opportunities, has provided the impetus for key developments in Agriculture that could open up new business/investment possibilities and support existing investments, thereby contributing to a stable economy and food security.

TTABA was established in May 2006 by private sector agribusiness stakeholders and Government support, to accelerate national economic and social development through the sustainable expansion of the agri-business sector. TTABA’s core business has been the provision of technical services for the development of selected agricultural commodity/industry value-chains and the provision of high quality, agro-processing services.

The Association has been successful in the operationalisation of an agro-processing service, which involves TTABA facilitating the commercial production and marketing of a range of semiprocessed and processed foods. More specifically, the service allows TTABA to convert contracted fresh produce into semiprocessed raw materials; offer contract food processing services to local and overseas food distributors for a range of agri-food products; offer contract food processing services to new and existing, local, small and medium sized enterprises (SME); and produce and market TTABA’s “Flavour Islands” and “Farmer’s Pride” brands, which comprise a range of value-added products.

Over the period 2007- 2012, TTABA was involved in the following initiatives: • Over 40 new agri-food products developed from local commodities (frozen staples, vegetables, meat, sauces, juices and bakery products).

•

US$20 Million invested in research, product and institutional development • Establishment of two commercial pilot plants • Test marketing of the new agrifood products, sales of which Trinidad and Tobago reached US$2M in the domestic Agri-business market in 2011 financial year, Association with gross margins averaging 23%.

• 15 Farmers’ Associations established and 226 farmers have benefitted from TTABA contracts covering 741 acres and output of over 8 million pounds.

• In addition, TTABA has made purchases from over 500 farmers that are not under contract.

TTABA has contributed significantly to domestic trade, establishing relationships with over 165 suppliers of goods and services and over 250 buyers in the local food service industries, including several major food manufacturers, many small agribusinesses, and doubles vendors.

Some 72% of TTABA sales are to the retail market, 12% institutional, and 16% school feeding.

TTABA now provides direct permanent employment for an estimated 1,150 persons at the farm level (estimated at two persons per acre) and some 1,500 temporary employees during harvesting and 350 other individuals along the value-chain.

In 2013, TTABA plans to stimulate and attract investments in the agri-business sector through the promotion of new technologies in food processing and product packaging. It will also focus on the introduction of global brands promoting local consumer products (food and beverage) with global appeal using local content. The Association intends, as well, to encourage ‘green’ technologies, thus reducing the carbon footprint of local agriindustrial activities through increased investment in renewable energy (solar, wind, etc.).

Business Trinidad & Tobago • 39

Business Environment Improving in T&T

In this article, the TTMA highlights the greater efficiency members are experiencing at the ports and Customs, with further improvements expected in 2013/2014; and discusses opportunities from the expansion of the Panama Canal, and the deepening of extra-regional trade.

Global Business Environment There was general consensus that 2011-2012 would see the resurgence of the global economy, following the crisis that began in 2008-2009. As it turned out, this recovery has been stymied by exogenous shocks in the form of political turmoil and natural disasters in the Middle and Far East respectively, along with escalation of the sovereign debt and banking crisis in the euro zone.

Despite this global scenario, the Global Competitiveness Reports for the last two years have revealed that Latin America has demonstrated a fair degree of resilience, registering average growth rates in excess of 3% during the period. This comes on the heels of a decreased GDP of 1.8% in 2009.

The threat of Latin American competition looms large and, in this context, it has become critical that T&T move toward strategically positioning its manufacturing sector output and set its sight towards becoming the commercial hub for trade in the Greater Caribbean region. This brings the issue of Trade Facilitation sharply into focus.

Marc Sandy Research Officer – Trinidad & Tobago Manufacturers’ Association

Trade Facilitation Agencies in the T&T Business Environment The regulatory agencies that play a role in Trade Facilitation - in particular Customs and Excise, T&T’s major ports and the Ministry of Trade, Industry and Investment - have all been making strides that are geared, both directly and indirectly, to improve T&T’s ranking on the Global Competitiveness Index.

One of the main factors contributing to our ranking on the Index is the burden of Customs procedures. In this regard, Customs and Excise has targeted its modernisation programme to bring about measurable changes to improve our ranking. This programme has been subdivided along the lines of document processing, inspection and release.

According to the Comptroller of Customs and Excise, Mr. Fitzroy John, since ASYCUDA World selfassessment began in 2012, import document processing is down from its previous average of 3-5 days to 5 minutes for smaller entries and a maximum of 20 minutes for the largest entries. This is a monumental improvement; one which manufacturers and distributors agree has radically improved the efficiency of raw materials and finished goods moving from foreign suppliers to the final warehouse destination. ASYCUDA World is the latest update to the Automated System for Customs Data being used by Trinidad and Tobago and more than 80 other countries around the world. It allows customs administrations and traders to handle most of their transactions via the Internet.

Mr. John added that additional modernisation work is being done with the United Nations Council on Trade and Development (UNCTAD) that will integrate the Division’s role in regulating commercial activity in Customs bonded warehouses, inland transit sheds, etc into ASYCUDA World. Once this is complete, it will facilitate the seamless movement of goods from their arrival at the port of entry to the manufacturers’ warehouse or bonded facility (where applicable).

Photo: Maria Nunes

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Customs and Excise expects the most tangible and sustained improvements to be derived once the Customs Amendment Act comes into effect. One of the immediate benefits expected is that Customs and Excise will have legal access to the manifest cargo data of consignees before a shipment arrives in Trinidad and Tobago, and this will allow import document processing and risk assessment to take place in advance. Ultimately, imported goods can then be loaded from the vessel for immediate haulage to the warehouse of consignees. The core deliverable in this can be summarised in one word – Efficiency.

Simultaneously, the Port of Port of Spain (PPOS) and PLIPDECO have both been improving their service delivery to their customers. Both ports are now utilising the ultramodern Terminal Operating System NAVIS SPARCS N4. Assistant Operations Manager of PPOS, Mr. Ricardo Gonzales, explained that this movement has empowered all its users to take advantage of its well-structured appointment system for collecting cargo and returning empty containers, thus placing efficiency gains into the hands of the stakeholders. Because of this, there were no major congestion problems experienced at the ports during the usually difficult Christmas season, a marked improvement over 2011 and previous years.

Looking ahead to the rest of 2013 and beyond, Mr. Gonzales believes that as T&T prepares to deal with the post Panama Canal expansion environment, major opportunities exist for our economy to capitalise on transshipment trade from Brazil to ports in Central and North America. While a lot of work still has to be done to prepare this country for the expansion, we are certainly moving in the right direction. Additional investment into port development from the government will be a tremendous catalyst in transitioning both ports to world standards.

The potential is even greater when one considers the Ministry of Trade, Industry and Investment’s work in developing the Single Electronic Window, also known as TTBizLink. The next step is to build the legislative and technical capacity to integrate these systems under one umbrella, which will result in the level of efficiency that the private sector really desires!

Business Trading Environment, Performance and Prospects A brief survey conducted with TTMA members has revealed that the trade facilitation environment - from the business, end user perspective - has improved tremendously with the implementation of ASYCUDA World and NAVIS SPARCS N4.

Despite these infrastructural improvements, actual trade within the Caribbean region has only increased marginally for some companies, and there is still some difficulty being experienced in penetrating extra regional markets. This has been reflected by low growth in the overall domestic economy. To this end, the TTMA, through its Trade and Business Development Units, will be working more directly and consistently with its members to deepen market access and penetration. TTMA supports the work being done to build export capacity by the newly formed exporTT, and has already been liaising with the agency to explore new avenues for the growth and development of export trade.

Our challenge now is to build a robust business sector which is efficient in its production, supported by agencies that provide timely and effective services and to create a financial environment that adequately incentivises companies to invest in further development.

The TTMA stands ready to be the institution that will respond to this challenge and serve as the essential cog in the wheel of industrial transformation for 2013 and beyond!

CCI goal: See non-energy exports of goods and services grow by TT$5 billion by 2015.

EDB/CCI Update Working Toward Greater Diversification and Competitiveness

With serious goals that have the potential of transforming the economy and local businesses, two public/private sector advisory bodies report on their goals and achievements with respect to making T&T more competitive, more diversified and more innovative.

Over the last 100 years, Trinidad and Tobago can boast of having developed the most diversified economy in the English-speaking Caribbean. However, it now needs to develop a new platform of industry Dr Rikhi Permanand and enterprise so that the next 100 years will see it continuing to enjoy its reputation as one of the most Executive Director – developed economies in the Caribbean.

EDB/CCI Two public/private sector advisory bodies set up to help achieve this are the Economic Development Board (EDB) and the Council for Competitiveness and Innovation (CCI). These two advisory bodies, working under the direction of the Minister of Planning and Sustainable Development, were established in 2011.

During this time, the groundwork was laid for an active work plan, which took effect from February 2012.

The role of the EDB is: i) to reshape Trinidad and Tobago’s strategies for economic development by facilitating diversification and achieving a diversified economy within the framework of sustainable development ii) the development of new economic spaces in the country, with priority given to the five Growth Poles identified in the Medium Term Policy Framework 2011-2014: North Coast, East Port of Spain, Central, South West peninsula and North East Tobago.

The role of the CCI is to take action to build national awareness of competitiveness and innovation, to improve our competitiveness ranking in the world, to make our firms more competitive, and to expand our non-energy exports.

Photo: Maria Nunes

Business Trinidad & Tobago • 45

NEC Energy Sector

TDC

TTIFC

Tourism

Financial Sector

invesTT National Investment Promotion Agency

EDB New Strategic Investments and Growth Pole Development

CCI Competitiveness

The New Roles and Interactions of the Institutions

EDB Progress 2011 - 2012 1.

Strategic Industry Clusters for Economic Diversification Focus has been achieved through the identification of seven strategic industry clusters for sustainable economic development – Energy, Food Sustainability, Culture & Creative, Maritime, Tourism, Financial Services and ICT. These were agreed upon at the Conference on Developing a National Diversification Strategy for Trinidad and Tobago, which was hosted by the Ministry of Planning and Sustainable Development in 2012 and included stakeholders from public and private sectors, NGOs, Trade Unions and Civil Society. The conference also agreed on establishing a Committee of National Stakeholders, to be chaired by the Minister of Planning and Sustainable Development, with the responsibility of: i) discussing and agreeing on a plan of action for stimulating investment expansion in Trinidad and Tobago ii) the championing of each cluster by a specific minister iii) the development of cluster specific strategies and action plans through the convening of cluster specific conferences with key stakeholders This is an important milestone as the nation has clearly identified the industrial areas for diversification and created an implementation mechanism, which will be action driven.

2. Rationalising the Roles of Institutions that Impact on Investment Promotion and Facilitation The EDB identified effective investment promotion and facilitation as a priority. However, the national investment promotion function was split and diluted across a myriad of various agencies, leading to a lack of holistic co-ordination, a lack of clarity of roles and responsibilities and inconsistent messages to potential investors, which could serve to discourage investment. There clearly was a need for the rationalisation of these various agencies to identify areas of overlap and to propose a coherent structure that was clear to the agencies involved, the government, the national community and potential investors both local and foreign. It was agreed that invesTT would take up this role.

The role of the national investment promotion agency is shown in the schematic above, where it has become the central institution managing flows of information and work amongst the network of agencies, being the primary interface between them and potential investors where necessary, and facilitating all the requirements to establish a business through a ‘one-stop shop.’

3.

Investment in Downstream Petrochemicals The EDB has been actively involved with the Mitsubishi Corporation and its partners in the development of a downstream petrochemical industry utilising a number of components from natural gas to make a wide range of petrochemicals with significant added value and having global demand.

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EDB goal: Determine potential for regenerating the cocoa industry and developing added value products for export.

The Minister of Energy announced in December 2012 the approval of Phase 1 of the project, which is the conversion of methanol to Di Methyl Ether (DME), which can be used as a substitute for cooking gas (propane) and diesel, and is a clean fuel. The first phase will involve an investment of US$850 million and will be located on 50 hectares of land in La Brea (part of the South West growth pole). The approval is subject to a certificate of environmental clearance, Town and Country Planning and other regulatory approvals.

The projects are diverse. One involves Doubles Production Machinery, “doubles” being a hugely popular and unique Trinidadian fast food that the Diaspora has taken to New York, Orlando, Toronto and other places with large Caribbean populations. Another venture, Teaching through Theatre and Technology, has already received the Best Recent Service Award from the Trinidad & Tobago Coalition of Services Industries (TTCSI) and, in February 2013, was in the midst of producing a documentary to be aired on BBC.

4. Renewable Energy – Solar Industry Manufacturing Complex The EDB, invesTT and other key stakeholders have worked together to get approval for SiTek and its partners to undertake a nine-month feasibility study of establishing a manufacturing cluster in the areas of float glass, silicon and photovoltaic (solar) panels for export. If the feasibility is successful, this high-tech manufacturing plant would involve a total investment of US$2 billion over a 7-10 year period and have the potential to create 4,000 high-tech jobs and 9,000 indirect jobs in the Central growth pole area.

2. Improving the Global Competitiveness Index (GCI) Ranking CCI’s target is to improve T&T’s position in the GCI by at least 20 points in two years. Given the time constraints, its focus in 2012 was increasing the participation rate of both the private and public sectors in the 2012 Executive Opinion Survey by building awareness with the key stakeholders. This was successful in that the number of T&T respondents to the Survey increased by 30% from 116 to 151. This response rate is far greater than many of the countries participating, including developed countries.

CCI Progress 2011 - 2012 1. Building National Awareness of Competitiveness and Innovation The CCI developed a national competition as a project and process to best serve the national economy by the development of sound proposals, creative initiatives and business ideas geared towards transforming the Trinidad and Tobago economy.

The intent was not only to solicit our citizens’ innovative ideas by providing an opportunity for individuals, enterprises and non-profit organisations to access funding, but also to offer significant technical and development assistance in getting these off the ground to the proof of concept stage. The target market was all citizens of T&T and the Diaspora.

A grant fund of TT$10 million was set aside by the Ministry of Planning and Sustainable Development to support this initiative. The competition was called idea 2 innovation (i2i) and was successfully launched on May 8th 2012. It attracted 400 applicants of which 50 were selected for grant awards ranging from TT$75,000 to TT$200,000. Award winners are currently going through mentoring and advice on business planning with the Caribbean Industrial Research Institute (CARIRI), while the National Entrepreneurship Development Company (NEDCO) is the fund administrator. A meeting with award winners and the Minister of Planning and Sustainable Development in January 2013 showed that many of the winners were making very good progress in the translation of their ideas into commercial ventures.

Plans Going Forward The EDB’s plans in 2013/2014 include:• Determining the potential for regenerating the cocoa industry to develop added value products for export • Assessing the viability of an aquaculture industry for export • Development of the maritime industry through a port rationalisation study and assessing opportunities for developing dry docking facilities and regeneration of the leisure marine sector • Development of the North Coast through enhancement of five fishing facilities for commercial and community development • Completing a Regional Development Plan for North East Tobago The CCI’s plans going forward include: • implementing a strategy that will see non-energy exports of goods and services increase by TT$5 billion by 2015 • improvement of the GCI ranking • implementation of i2i 2013 and an Innovation Week event • developing a National Innovation Policy and System • developing and implementing an export competitiveness index to enhance performance of current top exporting companies in the non-energy sector

Business Trinidad & Tobago • 47

David Dulal-Whiteway President – Bankers Association of Trinidad and Tobago (BATT)

Financing Development in Trinidad and Tobago In this article, BATT President discusses the vital role the banks have been playing in the country’s development and says equity funds, venture capital financing and bond markets need to be improved as avenues to finance T&T’s diversification and development thrust.

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Trinidad and Tobago is undoubtedly the most industrialised of the English speaking Caribbean countries. At US$18,000, this country now boasts one of the highest levels of per capita income in this part of the world. Although this country ranks 62nd out of 181 countries, it ranks 15th among the group of 45 countries in the “high human development” category, according to the United Nations Development Programme’s (UNDP) Human Development Index.

Often taken for granted or not well understood, the financial sector and commercial banks, in particular, from the outset have played a major role in bringing about this success. There is

Photo: Edison Boodoosingh

much that commercial banks now have to do to simply stay on top of their game. Much more can be done, however, if the rest of the financial sector is further developed such that the sector as a whole can play an even greater role in the development of Trinidad and Tobago.

Even before the US financial crisis in 2007, the business of banking and finance across the world became much more demanding in several respects viz. (i) the need for greater vigilance against fraud and money laundering (ii) the desire by customers for more rapid, safer and more sophisticated services and (iii) the demands for greater regulatory compliance and better corporate governance.

These demands have meant that banks, among other financial institutions, must expend much more resources on technology, training and fraud prevention. A case in point is the Foreign Account Tax Compliance Act (FATCA), which will require US and

foreign financial institutions to report certain information to the US Internal Revenue Service, on an annual basis. Meeting the demands of this piece of US legislation and others, means that a huge amount of resources has to be expended by the financial sector on an ongoing basis.

Notwithstanding these costly demands, commercial banks have impacted development by doing what they do best - that is, through the channeling of savings to borrowers including private business, government and households. The largest single share of commercial bank credit has always been for business purposes. This share has averaged 47 per cent over the last five years. Private sector business loans have been for the establishment or expansion of all types and sizes of business, trade facilitation, working capital and more.

Banks are also at the forefront in the financing of many of government’s infrastructural projects including hospitals, schools, roads and other public buildings. Indeed, this is one of the most direct ways in which banks contribute to economic

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development. Banks look forward to continuing to play this role.

Households have benefitted too - from loans for education, travel, payment of medical bills and for the building and furnishing of houses amongst other purposes. These have all led to a better life for many of our citizens. The importance of this type of socalled “consumption” lending is too often misunderstood and underestimated. Such lending not only stimulates the distribution and retail sectors of the economy, but also contributes directly to the greater happiness and well-being of the society.

In addition to the loans that have gone for development and other purposes identified above, banks are providers of instruments or products for savers and investors so that they can build their nest eggs and afford major purchases. These include annuity products, deposit products, mutual funds and a range of other savings and investment products.

Indeed, citizens invest in some of the very institutions themselves by way of equity purchase on the domestic stock exchange. In this way, they often have the opportunity for a major boost to their wealth, for themselves and for their children.

There is no doubt that banks in Trinidad and Tobago have risen to the challenges that have been placed on the sector over the years. The intense competition among foreign banks, a state bank and a private bank and the quite capable non-banks under an ever-vigilant Central Bank, have pushed banks to ensure that we excel at what we do best.

In meeting the needs of our clients we are well aware of our constraints. We recognise that our relatively small capital base, by global standards and prudent banking regulations, restrict how much risk we should take. This, however, has not prevented us from participating in key areas, such as the large hydrocarbon sector.

We are not unaware of some criticisms which urge us to extend ourselves further, to take more risk, especially in so-called “development” areas. Not only are we certain that we already make a good contribution to development by promoting savings, counseling business on proper financial management and lending for private and public development purposes, it is our view that the request is a bit misplaced. Banks cannot be “all things to all men.” That is, we can only supply the funding and other services that we are best equipped to so do.

Only approximately 10 per cent of our assets are of an equity nature, the rest comprises depositors’ funds. What this means is that we are severely constrained in any equity position that we might wish to take. We have learnt from the mistakes of others that depositors’ funds are not for reckless risk taking.

To do otherwise is to be imprudent in our management of our depositors’ savings and in our fiduciary responsibilities.

Having said that, however, we are aware that other aspects of our financial architecture need to be strengthened and extended.

These areas include, for example, the equity and bond markets.

Venture capital lending needs to be far more widespread and aggressive. We believe that borrowers should look to these additional avenues to complement their borrowings from banks.

In this way, we believe that the financial sector as a whole will play a bigger role in economic development.

It should now be clear that banks have, and will continue to play, a major role in the process of economic development. In the process, however, not only must we remain trustworthy and profitable but we must also meet the needs of our customers in an efficient and cost-effective manner. We must also work with the rest of the financial sector towards the further development of the equity, bond and venture capital markets. I believe that banks in Trinidad and Tobago are up to the challenge.

Duty-Free Tobago!

How would a thriving duty-free retail sector transform Tobago? In this article, President of the Tobago Hotel & Tourism Association Nick Hardwicke discusses why developing a domestic Duty-Free shopping industry is so vital to Tobago’s future.

At the heart of almost every vibrant regional tourist destination is a thriving duty- free retail sector selling everything from fine art and fashion wear to jewelry, gemstones, watches, consumer electronics, cameras, fine wines and spirits, porcelain, crystal ornaments, furniture, cigars and perfumes. The emphasis is always on luxury and the list of items for sale is almost endless as are the queues of people traveling from afar looking to purchase them.

Given that Tobago’s economy is heavily dependent on Tourism, and that retail therapy is an integral part of the modern visitor experience, the island’s private sector has, for years, lobbied for the legislation and concessions to allow this to flourish by declaring Tobago a duty-free zone for the purpose of the sale of luxury duty-free goods.

In 2011, the then Minister of Finance, the Honourable Mr. Dookeran, responded in the positive saying that studies were being done to explore the whole range of duty-free options for Tobago. In 2012, at the official opening of the Magdalena Grand Hotel in early July, the Honourable Prime Minister went further to suggest that the Government was actively exploring the subject with a view to implementation.

To date, studies are ongoing. However, it is the wish of many within the national business community, particularly in Tobago, that in 2013 this Government and the Tobago House of Assembly would finally create the legislative framework to give life to this vital but still missing piece of our national economy and tourism infrastructure.

Such an initiative would have costs, most notably in the abolition of import duties and ancillary taxes for qualifying businesses on the goods they wish to import for sale in this manner. However, this is a small price to pay for what we gain with the various associated activities that will be created across a wide range of economic sectors.

Entrepreneurial activity will help to dynamise our economy and create additional revenue streams, which will more than repay that which was given up by the Exchequer, with additional income tax and other levies created through enhanced employment and construction opportunities and additional monies circulating in the economy. In addition, almost every future sales transaction stemming from this initiative will earn this country much needed foreign exchange.

Once the necessary legislation is in place, we can expect that many of our mainstream national retailers and importers will jump at the chance to open premium outlets in Tobago, either as an extension of their existing businesses, or in the form of franchise arrangements with existing, recognised, international labels.

Indeed, given T&T’s growing international appeal as a crossroads for Nicholas Hardwicke regional and international travel and trade, and the strength and desire of President – Tobago our own domestic market for all things Hotel & Tourism glamorous, globally recognised brands Association such as Columbian Emeralds, Diamonds International, Hugo Boss, Tom Ford, The Body Shop, Bose, Dunhill, Lalique, Planet Hollywood and Hard Rock Café would not take much convincing to establish branches in Tobago.

Once open, their presence would give us parity with other established regional destinations such as Barbados, Antigua, Jamaica and the Bahamas, helping to enhance the international prestige and image of T&T as a country on the cusp of development.

Many of these new duty-free retail outlets would, of necessity, be located in Scarborough, adjacent to the port, giving renewed impetus to the ongoing programme of redevelopment and beautification of the island’s capital. Others would be based in Crown Point, the Lowlands Mall and, in time, further premium outlets would be required at different locations throughout the island. This would help to seed development and opportunity in communities located away from the traditional centres of activity. Facilities such as the Cove Industrial Estate would also be given a new lease of life due to the increased demand for secure warehousing, thus helping to secure the long-term viability of this facility.

Other than the physical transformation of our high streets, waterfronts and retail centres, one of the greatest benefits of this initiative will be in the creation of sustainable jobs. Indeed, even before a single item has been sold, necessity will require an overhaul of our essential infrastructure, refurbishment of existing spaces and the construction of multiple new business locations. Given Tobago’s relatively underdeveloped status in respect of assets of this nature, the island will consequently benefit immediately from a boom in job creation in the construction sector.

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Additionally, as the national business community mobilises to exploit the opportunity, demand for jobs in the supply and service sector will surely follow, as will the demand for retail and management staff required to operate this new retail sector.

Many thousands of well-paid, sustainable jobs will be created and will themselves drive demand for a whole range of other services necessary to support the ambitions and needs of an upwardly mobile, broadly middle class, consumer-based, local economy.

Given that retail therapy is a prerequisite part of the modern visitor experience, the impact of the duty-free initiative will certainly have a tremendous and positive effect on the fortunes of the island’s Tourism sector. Our lack of duty-free shopping is a glaring and noticeable gap in our tourism portfolio.

Creating it will allow us to be regionally competitive and give us positive headline status with a new niche to announce and promote to the world. This, in turn, will drive demand from tourists and allow us to open up new markets in South and Central America, Eastern Europe and the BRIC countries where it is acknowledged that luxury duty-free shopping is a prerequisite for encouraging their nationals to undertake long haul, long stay international travel.

Duty-free shopping will also give a major boost to T&T’s ambitions to become a regional powerhouse in the Cruise Ship sector. Whilst many islands currently record multiple cruise ship arrivals per day, Tobago - with all its natural and physical beauty and history - still struggles to attract more than 30 a

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year. Cruise lines cite the lack of demand for the destination in favour of more glamorous islands with better shopping and attractions as some of the main reasons for this. Indeed, one only has to reflect on the data that indicates that the average passenger disembarking in Tobago for a day spends less than US$20, compared to other islands where they spend in excess of US$100, to identify that we are not creating enough opportunities for them to willingly part with their money.

Even with the introduction of legislation to support the development of duty-free shopping in Tobago, change will not happen overnight. It will take some time for the preparatory work to be done and for word to spread. However, once it has, it will help to drive demand for visitor arrivals to the destination in a way that few other initiatives can over the short-term. Increased demand will, in turn, positively impact the supply of four and five star hotel room stock and the requisite international air links to serve the destination. It will help to boost confidence in the destination and drive foreign direct investment in both these and other areas, as it has done in other destinations in this region and throughout the world.

The global demand for duty-free shopping as a stimulus for a vibrant Tourism sector is unquestionable. The potential for such initiatives - when integrated with developments in the Tourism sector - to create sustainable employment, wealth, and to stimulate commercial activity and social mobility for our people is unparalleled.

Solar Energy for the Future

The economic and environmental case for solar energy is clear, the technical advantage for T&T is indisputable, Government is committed, incentives have been put in place and are likely to improve, and early investors are getting in place to catch the rays of profit.

Strict reliance on conventional fuel sources such as coal, oil, and natural gas is becoming questionable as reliable energy sources for future generations. The impact can be examined from both an economic and an CEO – Solar Gray Ltd, environmental perspective. Countries with a heavy reliance on oil and gas Member – Trinidad should be preparing for the future by looking at alternative sustainable and and Tobago Chamber renewable energy sources. of Industry and One sustainable and renewable energy source that should be a priority Commerce for countries like Trinidad and Tobago is solar energy. Solar energy is clean, it is reliable, it increases energy self-reliance, it reduces our overall “carbon footprint,” and it is an infinitely renewable source. Compared to fossil fuels, solar energy is not a contributor to one of the world’s most common air quality problems - photochemical smog.

One might ask “Why Solar for Trinidad and Tobago?” Well, according to data from the National Aeronautics and Space Administration (NASA), Trinidad and Tobago has some of the highest insolation values in the western hemisphere. The insolation value is a measure of the amount of solar radiation per unit area per day. The average solar insolation value in Trinidad and Tobago can be as much as three (3x) times higher when compared to countries in other parts of the world that are taking full advantage of solar energy, such as Germany, China and the United States.

Therefore, if countries with lower insolation values are taking advantage of solar energy, then Trinidad and Tobago should definitely begin to implement such an energy source as part of its strategic array of resources. In places like North America, industry standards dictate that solar panels are to be positioned at an angle of 40 degrees facing south. The closer the angle is to zero, the greater the amount of sunlight absorbed. This augurs well for a country like Trinidad and Tobago, because we are positioned approximately 12 degrees north of the equator. As a result, it affords us the luxury of positioning solar panels, flat plate collectors and solar evacuated tubes at angles of 12 degrees or less and still optimise on solar radiation.

Harnessing solar energy in Trinidad and Tobago is not without its challenges and critics. Some people argue that solar is too expensive for the average person to purchase. While the upfront costs may be above what a person may pay for conventional energy, the return on investment in solar balances out expenditure on conventional energy. For example, a solar water heater (thermal) pays for itself in approximately 4.5 years.

Another challenge faced with the slow introduction of solar energy in Trinidad and Tobago arises because the current cost of fossil fuel (Oil, Natural Gas, Coal) is somewhat low. Government has already announced its intention to address this issue, beginning with an increase in premium gas prices in 2012. It is also acknowledged that oil and natural gas are non-renewable resources that will eventually run out. The country should, therefore, embark on a backup plan before the reality hits, Chris-Andy Gray

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Photo: Sarah Carter

Trinidad and Tobago is well-positioned for the gradual introduction of solar modules (photovoltaic and solar thermal systems).

The energy distribution that is in place for oil can facilitate the transition to a solar hybrid system. just as the Pharaoh of Egypt used his seven years of plenty to prepare for famine; hence the need for exploration of and investment in renewable energy sooner rather than later. Finally, some people argue that the current tax rebate incentives that the government offers with respect to solar are too low. This, however, should change as the prices for solar hardware decreases with demand and more discussions are held both by governmental and private entities.

Making the gradual change to alternative energy sources in countries like Trinidad and Tobago, which currently rely on oil and gas as major energy sources, requires careful planning and strategic partnering between government, established solar companies with the necessary expertise, financial institutions and private investors. A well-structured educational campaign could be implemented to convince both residential and commercial users across the country that solar energy offers a sound replacement, and a long-term responsible solution, to the existing non-renewable platform. Moreover, it must be noted that alternative and renewable sources of energy are now part of a global trend that Trinidad and Tobago should begin to position itself to take full advantage of and gradually implement.

The time is ripe for investors to begin looking at solar energy and its development in Trinidad and Tobago in light of the existing infrastructure that was developed for the oil industry. This calls for something analogous to a hybrid energy source where solar energy will be slowly introduced and eventually become a major renewable and economically sound resource. For example, Germany, one of the world’s top photovoltaic (solar panel) installers, currently receives approximately 4% of its electricity from solar energy. The German government has set an ambitious goal of increasing that number to 20% by the year 2020.

Similarly, countries in the Caribbean like Jamaica, Barbados, Grenada and St. Lucia are known for their development in the field of solar thermal and photovoltaic. Jamaica plans to build the largest solar power plant in the Caribbean costing over US$442.2 million. In Barbados, 15% of their energy budget depends on renewable energy mainly in the form of solar water heaters, rather than conventional fossil fuel. Through governmental intervention, they anticipate broadening their scope of renewables to include photovoltaic, wind, solar thermal and bio-fuels, to name a few, so that their energy usage from renewables can reach a target of 20% by 2026.

If Barbados and Germany can do it, then so can Trinidad and Tobago. The energy distribution that is in place for oil can facilitate this transition. Trinidad and Tobago is well-positioned for the gradual introduction of solar modules (photovoltaic and solar thermal systems) that can represent this solar hybrid system. As more and more applications for solar energy are accommodated, very gradual reduction on the dependence of conventional fossil fuels can be realised.

Investors must begin to look at Trinidad and Tobago as an ideal locale for this type of development.

Moreover, there are solar companies already conducting business in Trinidad and Tobago, which will encourage public-private partnerships and investors to continue expanding on this development.

From an environmental perspective, utilising solar energy should be a welcome change for a place like Trinidad and Tobago since it will reduce the country’s carbon footprint. In addition, it will signal that Trinidad and Tobago is serious about becoming a more environmentally friendly and sustainable nation.

The time is now! Trinidad and Tobago is ready for major investments in its solar industry. The platform is in place; there is willingness by the government, past and present, to incentivise the process so that residential and commercial customers can take advantage of solar energy; and there are solar companies in place that are open to partnering with investors in order to continue promoting and expanding this industry.

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38 regional and international productions chose T&T in 2012 as their preferred location, attracted by both the suitability of the place and the 35% Production Expenditure Rebate incentive.

Photo: Maria Nunes

Trinidad and Tobago’s Film Industry - Breaking New Ground The Film Company of T&T is battling for Trinidad and Tobago’s space in the global film market with attractive incentives, a broad-based, local community of film producers, energetic marketing of T&T films, training programmes, and film festivals.

Trinidad & Tobago Film Company

Photo: Maria Nunes

The mood is decidedly upbeat and aggressive inside the Trinidad and Tobago Film Company (TTFC) where, after a year of consolidating hard-won gains, the stage is now set for shifting gear to a whole new level of competition.

In an early signal of its intent to battle for Trinidad and Tobago’s space in the global film market, the Government of Trinidad and Tobago has upped the ante against the competition by raising the cap on the Production Expenditure Rebate to $3 million of all money spent locally on any given film.

This measure, which puts Trinidad and Tobago among the most incentivised film locations in the English-speaking Caribbean, is merely the latest aspect of TTFC’s strategic thrust.

Here at home, it is hard to miss the outburst of new energy in the burgeoning film sector. After decades of dormancy, the TTFC can lay claim to having stirred the sector into life. For the first time in its history, Trinidad and Tobago has a defined, broad-based community of film producers who are at work on an ongoing basis.

Many of these are young people with a professional commitment to earning their living producing film. As a new economic community grounded in the creative sector, they are the vanguard of the diversified economy that Trinidad and Tobago recognises as vital to its viability beyond oil and gas.

The new dynamic has affected audiences, as well, who are feasting on an unparalleled menu of local films.

One key gauge of audience interest is the Trinidad and Tobago Film Festival (TTFF) which, over the course of its seven years, has attracted increasingly bigger audiences. Last year, the TTFF recorded a phenomenal 40 per cent increase in audience for the 200 films screened, more than half of which were local.

The TTFC enters 2013 with the satisfaction of some significant industry breakthroughs in 2012.

Several films that received support under its Production and Script Development (PASD) financing programme set new heights for local films.

Chief among them was Doubles With Slight Pepper, which won the prestigious Canadian Genie award for the Best Live Action Short drama. Mas Man, a documentary on Peter Minshall, has scored success after success with a total of 10 awards to date. A PASD short, Pothound, was nominated as a finalist in the 2012 VIMEO awards.

Rose, Lioness of the Jungle, an equity-financed documentary film on Calypso Rose, was picked up for broadcast in the United States by PBS under a one-year contract. Rose was adjudged the most

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Several films that received support under the TTFC’s Production and Script Development (PASD) financing programme have won foreign awards. viewed film across the Afro Pop/PBS networks and distributed in the US educational market by Women Make Movies and by Arte Distributions outside the US. The film’s recent second place win in the Documentary category of the 2013 FESPACO Film Festival, the prestigious African Film Festival of Burkina Faso, is a first for a Trinidad and Tobago film in Africa. With PASD assistance, eight films were completed in 2012 with another eight being selected from 29 applications for development support.

A strategic decision that yielded immediate results was the TTFC’s call for proposals for adapting Caribbean literary work to film. Given the Caribbean’s rich literary legacy, the TTFC initiated the Literature Adaptation Programme to encourage producers to consider the region’s literary storehouse as material for producing interesting, culturally relevant content for film. Out of this call, CLR James’ groundbreaking Minty Alley, the first novel by a black West Indian author to be published in England, was selected for support. The screenplay for Minty Alley is now being developed.

The T&T Film Company has been putting some serious muscle behind pushing T&T films out into every possible marketfrom domestic to international. In addition to supporting the annual film festival, TTFC has partnered with the T&T Film Festival, private sponsors, local authorities and communities to produce “Film Nights.” Through this community screening programme, locally-made films are shown free of cost to people in communities throughout Trinidad and Tobago.

Another partnership with the Little Carib Theatre, producers and patrons has yielded the very successful “Filme Caribe” series, which was held at the cosy Little Carib Theatre in Woodbrook.

Outside of T&T, the TTFC continues to explore every potential vehicle for distribution. Through the Travelling Caribbean Film Showcase, three T&T films – Classical Steel, The Amerindians, and 70: Remembering a Revolution, were selected for screening in 22 countries across the Caribbean. Amerindian was also shown at the University of Toronto.

TTFC has also cut a path into foreign markets through T&T embassies in New York, Toronto and London. Using this network, it was able to screen films to Diaspora audiences in July and August 2012 to coincide with Trinidad and Tobago’s Jubilee Anniversary of Independence.

Distribution and marketing is underpinned not only by the PASD programme, but by the TTFC’s continuous training and technical support programmes, through which experienced film makers and crew are drafted to train teenagers throughout secondary schools. The work of these students can be found

in the Secondary School Short Film Festival, which has evolved into the country’s most important school film event.

Last year, 43 trainers and assistants were contracted to teach film production basics to over 500 students. By the end of their training, they had produced 35 films to take into the festival competition. Sixteen awards for technical and creative excellence were awarded, among them the top honour for Best Overall Film, which went to Roxborough Secondary School’s Dis Ah We Own. Based on the success of the Secondary Schools film-making programme, the TTFC launched a new Community Short Film Festival in collaboration with the Ministry of Arts and Multiculturalism. The inaugural project involved five community groups from which 40 persons were trained in film production.

While maintaining the momentum in production, marketing and distribution of T&T Films, TTFC continues to push T&T as a film location for producers throughout the world. Its efforts have been earning significant dividends. In a landmark development in 2012, 38 regional and international productions chose this country as their preferred location, attracted by both the suitability of the place and the 35 percent Production Expenditure Rebate incentive. Among them were two high profile productions, Home Again, with Trinidad-born Hollywood actress Tatyana Ali, and Nikki Minaj’s video for her recent hit, Pound The Alarm.

The impact on the local industry and economy was immediate and tangible. Together, these 38 productions are estimated to have spent TT$12.3 million in this country. Much of the money went into hiring technical and creative personnel, paying for accommodation at hotels and guesthouses, purchasing equipment and materials and acquiring support services such as transportation and catering.

In moving forward, the TTFC is focusing on improving the cost and ease of doing film business in this country and on expanding and deepening the industry’s reservoir of technical and creative capabilities. This will require greater investment in training as well as a more integrated and effective collaboration between itself and those agencies that impact on the operations of the film sector, from incentives and taxes, to production, promotion and distribution. It will also require policy clarity and implementation coherence.

With the unfolding of its five-year strategic industry development plan (2012-2016), these are among the priority areas for putting T&T’s film industry into high gear.

Business Trinidad & Tobago • 63

Couva – Proven Potential, Future Opportunities Sandra Chouthi

Couva is part of the Central Growth Pole selected by Government to receive a special package of fiscal incentives, including the granting of Free Trade Zone status. The Growth Poles will be centres of investment in industry, creating jobs for citizens in the surrounding communities.

Couva has all the key elements to become a new growth pole for T&T - a busy port, a model industrial estate, central location between cities and townships, a heliport and hospital, a university campus, a sports stadium and, most importantly, enough land for agriculture, houses and businesses.

“We have a competitive edge over other areas,” said Lily Herai, President of the Couva/Point Lisas Chamber of Commerce, in an interview at the Chamber’s new offices at Camden Rd, Couva.

Location…Location…Location Former sugarcane-growing Couva is roughly 15 kilometres from San Fernando, 15 kilometres from Chaguanas and 40 kilometres from T&T’s capital of Port of Spain. In addition to sprawling the Caroni central plains, Couva’s closeness to the Solomon Hochoy Highway, which connects to the newly-built $75 million Preysal interchange, ensures easy access to business centres.

That access will become even easier when the dualling of Rivulet Road - the main artery for the movement of industrial and bulk transport between Pt Lisas and the highway - is completed in 2013.

Port Point Lisas - T&T’s second major port - is located 32 kilometres south of Port of Spain, covers 19.51 hectares, and processes containerised cargo from the United States, Europe, the United Kingdom and the Far East. Couva is also home to the 860-acre Point Lisas Industrial Estate, which represents an investment of more than US$2 billion, and has more than 103 tenants comprising a mix of world-class methanol, ammonia and urea plants; three steel plants; a power plant; and smaller light manufacturing and service companies.

New Projects One significant project expected to begin construction in the second quarter of 2014 on the Estate is the US$2 billion AUM II complex owned by Methanol Holdings Trinidad Ltd. The plant will employ 3,500 people at the peak of construction, create 450 permanent jobs and 500 service jobs. When completed in the third quarter of 2017, the plant will produce 1,850 tonnes per day of ammonia, which will be used to manufacture urea, melamine, ammonium sulphate and melamine urea formaldehyde resin. Downstream production opportunities from these products include resins for laminates, coatings, textile treating and paper treating; fertilisers; and building materials.

Further economic diversification will come when the new $48 million Brechin Castle Packinghouse and Multipurpose Agro-Processing Facility is completed in September 2013. Food Production Minister Devant Maharaj turned the sod in January 2013 to start construction of the packing house for local produce, which is expected to open up opportunities for farmers and agroprocessors to increase production.

National Helicopter Services Ltd (NHSL), located on some 10 acres of land in Camden, Couva, will be increasing its terminal space in 2013 to meet the growing demands of its clientele, particularly in the offshore energy sector.

General Manager Joshey Mahabir told BT&T that the company has secured an additional 18-acres of land from the government for a $20 million new terminal and that construction would begin in the 2nd quarter of 2013 and be completed by the 2nd quarter in 2014. The company will also be expanding

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The Central Growth Pole stretches from Claxton Bay in the south to Charlieville in the north and includes Pt Lisas, Chaguanas and Couva. its fleet by 4-5 additional helicopters to serve its T&T and regional clients, particularly with respect to transporting passengers to and from rigs offshore.

NHSL will also be investing $5 million to build an Aviation Learning Centre at Camden, as part of a Memorandum of Understanding signed with several key stakeholders to build needed capacity in the industry. The MOU was signed with Caribbean Airlines, Metal Industries Company Ltd, the University of Trinidad & Tobago and T&T Civil Aviation Authority. The new building will be ready in September 2013, and will help deepen the pool of resources with respect to avionics engineers and mechanics, Mahabir said.

There’s more to come. In October 2012, the sod was turned for the construction of the NIHERST Science City on 52 acres of land in Indian Trail, Couva. The National Science City is envisioned to be a world-class facility for fun and experiential learning of science and technology.

Couva will also be getting a US$150 million ultramodern children’s hospital; a national aquatic centre, to be built next to the Ato Boldon Stadium; and work is underway on a new medical laboratory in the Couva District Health Facility, funded through a donation of more than US$3.5 million from PotashCorp (PCS Nitrogen Trinidad).

Couva Resurgence Plans by the government and the private sector for Couva’s development are the most concentrated activity this central town has received since the 2003 closure of the sugar factory Caroni (1975) Ltd, which saw 7,695 workers losing their jobs. Former employees who received two-acre plots are only now beginning to cultivate them, especially along Rivulet Road. Houses are to be built on lands leased to them.

Caroni’s closure has seen the old tractor shed (engineering) at Rivulet Road, Brechin Castle being converted into a National Energy Skills Training Centre, which offers 20 courses to 400 students ranging from pipefitting and fabrication to instrumentation. NESC business development officer Kevin Manickchand said 60 per cent of students get a job within three months of graduating. Chamber president Herai said the NESC is to construct housing facilities opposite its compound on Rivulet Road to accommodate Nigerians who sign up to study at NESC. UTT’s Point Lisas campus at Brechin Castle, Couva has also been established, as has the UTT’s Energy Institute nearby.

Dr Thackwray Driver, CEO of the Pt Lisas-based Energy Chamber, said while the industrial estate is full to capacity, there is a proposal to do photovoltaic solar manufacturing in an area north of Pt Lisas.

He sees opportunity for building better quality business facilities in Couva, saying: “There is a need to upgrade business support amenities such as the golf course, better meeting spaces, more flexible meeting spaces, a hotel, places for staff functions.”

There is activity in other areas. Danish shipping company Maersk Line has shifted its administrative office from Chaguanas to Atlantic Plaza in Pt Lisas; shipping and freight companies are looking for office space in the area; retailer Rattan’s has opened a new store along the Couva Main Road; J-zz’s International Steak House opened on the Southern Main Road in 2011; and businessman and former chamber president Nal Ramsingh is constructing a 59-room hotel on Noel Street North to cater to business people coming to Pt Lisas as well as visiting sporting teams, including cricketers.

The T&T Automobile Sports Association (TTASA) also has plans in the Couva area. Chairman of the Board of Trustees Vishnu Mangalsingh told BT&T that the Association has set up a committee to plan a way forward for motorsports in T&T, including developing a plan for the 65 acres of land in Waterloo that Cabinet has approved for motorsports. He expects a report by mid-2013 and noted that TTASA would be able to call on the International Federation for Autosports (FIA) to help it develop a racing circuit in Waterloo.

In the short-term, the Association is looking to have its Camden Field lease renewed before it lines up investors to develop the facility and reactivate circuit racing activities such as drag racing and karping.

Ramsingh believes that projects announced and for which the sod has been turned need to get underway for the Couva economy to benefit and says: “With the proper development and direction, Couva will be a force to reckon with!”

66 • Business Trinidad & Tobago

T&T’s Young Entrepreneurs – Shaping the Future

From sophisticated fly by wire toys to anti-allergenic hair and skin products, T&T has a significant and growing pool of young, innovative entrepreneurs who are setting up businesses, with little government or other assistance, and demonstrating huge potential to expand their enterprises and become a significant contributor to economic growth and development. With the right infrastructure and support, T&T could accelerate the growth of these businesses and attract local and international funding to finance expansion. International Business Consultant Ian Ivey writes about T&T’s innovative young entrepreneurs and the potential he sees.

I first came to T&T in 2005 and managed a number of sector foresight projects for NIHERST which focused on working with local stakeholders to identify high value business opportunity areas that could be developed Ian Ivey and reduce the country’s high level of dependency upon energy sector Principal – revenues.

NEXT Caribbean Between 2007 and 2010, I worked on a major national youth project, Ian.ivey@ also funded by NIHERST, called ‘The Gen Y Project.’ The aim of the project nextcorporation.net was to develop an intimate understanding of what young persons, aged 15 and 25 years and living in T&T, felt they needed in order to achieve their aspirations. Over 200 young people from all walks of life and from around the country were involved in an indepth interviewing and engagement process to identify a few key initiatives that they felt were essential to support them to realise their ambitions.

Interestingly, none of them asked for money. The top three initiatives to help them achieve their aspirations, which they chose as groups, were: • A personal 10-year future life plan and personal vision development toolkit and process.

• Support with learning how to use modern ICTs. • An online entrepreneurship and innovation club where they could meet virtually with their peers, share ideas and help each other to succeed.

Working with them as partners, all three initiatives were developed and delivered for them to use either on their own or in association with groups that supported youth development.

When conducting the Gen. Y project interviews, 62% of the young people interviewed said that they wanted to develop their own businesses - a big change from the ‘why don’t you just get a job’ attitude that prevailed amongst many of the older generations. What has been especially gratifying for all those involved with the Gen. Y project is the strong growth of the online Trinidad and Tobago Entrepreneurship and Innovation Club. Its Facebook area was set up three years ago and now has over 850 active members with almost 60% being 18 to 35 years old. They have responded positively to something they said they wanted and which was designed and delivered for them to use.

Photo: Sarah Carter

Business Trinidad & Tobago • 69

After seven years of working in this field, I believe we are now seeing an early stage breakthrough in business entrepreneurship and innovation in T&T. This network has become much more than just a Facebook page. It has enabled those of us working in the fields of entrepreneurship and innovation to connect with many young, upcoming entrepreneurs in T&T who we would never have met through traditional channels. Social networks such as Facebook are a place where they feel they are with ‘friends’ and they share a great deal that they would never share in a workshop or public engagement session.

Over the past 12 – 18 months (starting in mid-2011), we have become connected with numerous young entrepreneurs through this virtual network and discovered that they are doing many things that are exciting for the future T&T economy.

That’s because they are developing tomorrow’s businesses, not yesterday’s. Here are a few examples: • An entrepreneur who has developed a software platform that supports driverless vehicles and aircraft, which he is using, initially, to make and sell sophisticated ‘fly by wire’ toys.

• A US business development with a strong T&T alliance called Ammble (www.ammble.co) that uses a unique ‘fourmat’ for promoting businesses and concepts.

• A young entrepreneur in Princes Town who has developed a range of body care and skin products for people who are sensitive to allergies. While this, in itself, is not unique, what is unique is her world-class packaging and presentation as well as her marketing model, which combines several established virtual channels and an agent in a key location.

• Two young entrepreneurs who have developed a successful online healthy food marketing portal (when everyone said it would never work in T&T).

• A young entrepreneur from Tobago has developed a special range of anti-allergenic hair products, which are now being sold over the Internet to offshore customers.

• There are at least three young entrepreneurs who are trained at tertiary level in the business of fashion and are developing a new way forward for the T&T fashion sector, which has declined substantially over recent years to become a pale shadow of what it once was.

They are using modern ICT tools including mobile apps, online publications that put T&T in a global context, and social networks to build a following and new customer connections on and offshore. They are also conscious of the need to have a complete value chain in place for the sector to function and have been carefully ‘pulling together’ the pieces, both from within and outside the sector, needed to develop the foundation upon which a thriving, modern, hi-tech, global niche fashion business can be built.

It is still early days but what is especially exciting about these young entrepreneurs is that they have not been sitting

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around waiting for government handouts to get started. They have had such a strong passion about what they want to do that they have just gone out and done it!

A true entrepreneur generally does not need much money to get started. In fact, most of the entrepreneurs we have studied in the region start with less than US$5,000. What they do understand is the growth trends that are shaping future markets and how to connect with them. In other words, they have foresight. What they do need is people who believe in them and who help them get through the tough days, mentor them, complement their weaknesses, and encourage them.

That’s what all these new, upcoming entrepreneurs understand and do well.

From an investor’s point of view, this new group of emerging, highly self-motivated entrepreneurs is an encouraging development. There is little on the traditional T&T scene that excites most investors these days. But this new generation of entrepreneurs is prepared to take the first step risks and establish a non-traditional SME business that can grow into something bigger. It is at this point that serious investment becomes essential and is not easy to access.

Over the past year, we have begun to see the evolution of business incubation initiatives supported, for example, by the Ministry of Labour and Small and Micro-Enterprise and its national Integrated Business Incubation System (IBIS), which was pioneered by Michael Gordon. In part, this aims to accelerate the development of entrepreneurial businesses in T&T. One especially exciting development is CARIRI’s new Centre for Enterprise in Freeport which will commence operations in the second quarter of 2013. This will not only provide a comprehensive ‘ideas to business’ support infrastructure, but also business acceleration and access to ‘Angel’ funding networks in conjunction with both local and international partners.

After seven years of working in this field, I believe we are now seeing an early stage breakthrough in business entrepreneurship and innovation in T&T, one which is starting ‘bottom up’ and being driven by passionate young people who, as the President of one of T&T’s leading private sector groups recently said, perhaps should be mentoring those of us who are part of the older more traditional business generations! They understand the future and know how to succeed in the future market place.

Useful Links: The Trinidad and Tobago Entrepreneurship and Innovation Club (TTEIC) http://www.facebook.com/pages/Trinidad-and-TobagoEntrepreneurship-Innovation-Club/191970450275?ref=ts&fref=ts The Trinidad and Tobago Foresight and Innovation Network (TTFI) http://www.ttfi.net

World drybulk cargo leader, Oldendorff Carriers, invested US$45 million in a new bulk transshipment hub in Trinidad and Tobago to move iron ore from Brazil to China and the Middle East.

invesTT – the One-Stop Shop for Investors In just over a year, invesTT has earned its reputation as Trinidad and Tobago’s leading investment promotion agency through a combination of hard work, political will and collaboration. We’re already reaping success from our efforts and the future looks good for foreign investment.

As we work hard to source quality investments, we’re simultaneously focused on beefing up efforts in facilitation to improve the experience for our client companies.

Our Facilitation team is now better able to assist with logistics such as trade licences, permits, and other regulatory approvals, fast-tracking them on behalf of investors so they can concentrate on what’s really important — operations.

The Government has thrown its support behind this initiative. In his maiden budget speech on October 1st 2012, Minister of Finance, Senator the Honourable Larry Howai, said: “Government has designated invesTT as the national investment Kelvin Mahabir President – invesTT facilitation agency of Trinidad and Tobago. invesTT will therefore now be responsible for the client management for all major investments locally, which will reduce the burden of investors in dealing with the GORTT.” I’m happy to report that foreign investors are increasingly satisfied with this approach to doing business. CEO of Oldendorff Trinidad, Scott Jones, spoke about his experience: “Our colleagues did some exploratory trips to Trinidad and they found the business environment here friendly. The Ministry of Trade, Industry and Investment was first approached and were very welcoming and supportive of the idea, and then they introduced us to invesTT which was, I guess, the one-stop shop to help us set up here and invesTT were very proactive in telling us what needed to be done...”

Facilitating engagement with potential investors is important to us. In the past several months, we’ve improved our overall strategy and now offer better online support to investors who are seeking to do business in Trinidad & Tobago.

We launched our blog to be part of a wider conversation about foreign direct investment (FDI) across Latin America and the Caribbean. We’re actively using social media channels on LinkedIn, Facebook, YouTube and Twitter to provide information about potential opportunities in Trinidad and Tobago. If you’re not yet subscribed, you should be.

In engaging with investors online, we’re providing valuable information. We’re talking business: everything from how our energy costs compare across the Caribbean, to how Trinidad & Tobago can be a vital link to South American markets like Brazil, to the real opportunities in renewables, to the impressive incentives for investment in the creative industries.

To top it off, www.investt.co.tt is proving to be an excellent resource if you’re looking for testimonials from investors who’ve already chosen to expand to Trinidad and Tobago.

Photo: Edison Boodoosingh

Business Trinidad & Tobago • 73

We now offer better online support to investors who are seeking to do business in Trinidad & Tobago.

While total FDI for 2012 is still being tabulated, we recorded important successes last year.

World drybulk cargo leader, Oldendorff Carriers, invested US$45 million in a new bulk transshipment hub in Trinidad and Tobago to move iron ore from Brazil to China and the Middle East. Creating close to 100 jobs, it was the first such investment in the country’s history and is expected to stimulate the growth of the bulk transshipment industry, one of government’s new priority sectors.

Another success story was the securing of investments by our sister agency, the Trinidad and Tobago International Financial Centre (TTIFC), from Scotiabank and Pan-American Life Insurance Group (formerly Algico). Together, these investments validate invesTT’s claim that Trinidad & Tobago is an excellent hub for business processing outsourcing to serve the region.

Buoyed by a stable political climate and a resilient economy, invesTT’s client companies have seen job growth on a small but steady scale. And it’s not just large company expansion.

Small entities like Medullan, an ICT company serving the healthcare industry, have expanded to Trinidad and found capable and talented people to power their operations.

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It hasn’t, altogether, been smooth sailing. We’ve had our challenges within the regulatory framework. However, by working closely with our partners at the Ministry of Trade, Industry and Investment (MTII) and the Economic Development Board, invesTT has played a significant role in bringing about change in this area.

By mid-2013, the MTII will finalise the implementation of a customised Single Electronic Window (SEW) known as TTBizLink. Commenting on the significant cost and time improvements TTBizLink will introduce, Minister of Trade, Industry and Investment Vasant Bharath has said they “are in line with our e-Government strategy to utilise ICT to … transform Trinidad and Tobago into a world class business hub with an efficient, transparent and attractive business climate.”

These reforms have been effected in other areas: to finance and securities legislation, for example, and more Bills are carded for introduction in the Parliament this year to improve efficiency and stimulate foreign investment.

Together, these actions are geared toward creating a better industrial climate here at home. Foreign investors will do well to consider Trinidad and Tobago’s strategic advantage at the gateway to Latin America.

TESTIMONIAL

ASCO Trinidad Ltd Trinidadian and ASCO Executive Director John Gransaull explains how and why ASCO came to Trinidad and what keeps it here.

Who is ASCO? ASCO Trinidad Ltd, a wholly-owned subsidiary of the ASCO Group, provides shore-base, pipe-yard, marine and warehouse logistics services to many of the major oil and gas companies operating in Trinidad and Tobago. We also provide advanced and integrated waste management services and vessel tankcleaning. The company has a highly competent staff that operates the advanced systems and tools and manages a large sub-contractor workforce.

What brought the company to T&T and when?

The company established a permanent presence in T&T in 2001 when it won a five-year contract with bpTT who was looking at the possibility of outsourcing their logistics and marine operations in Galeota Point. ASCO was successful in retaining the contract when it was rebid 10 years later for the operations at Galeota Point to go through a complete refurbishment.

What has helped the business to succeed?

ASCO Trinidad is almost entirely managed and operated by locals and our customer base has grown to include many of the major oil and gas companies operating in Trinidad. Additionally, the company has been successful in supporting operations in Suriname, French Guiana, Guyana and in the Falkland Islands with local employees and resources, in addition to establishing operations in those facilities managed by Trinidad personnel.

The company has piloted many tools and systems that are adopted across the ASCO global organisation.

Initially, we started with an excellent relationship with our major client, bpTT, and were deeply embedded in their operation. Jointly, we managed to greatly improve bpTT’s logistics efficiency, costs and safety performance. Also, ASCO

was committed to using personnel from the surrounding areas and to use expat managers only for training periods. In addition, we have been fortunate to have had excellent relationships with our sub-contractor workforce and to a very large extent are still using the same subs for the last 11 years.

Being a member of a large and very dynamic global organisation has helped tremendously in access to best practice systems, processes and tools and also having access to advanced training and networking.

What do you like about living in T&T? I can speak for one or two of the expats as I have a very good relationship with them – they enjoy the spirit and the nature of Trinidadians and the very strong can-do attitude. Also, Trinidadians are competent and hardworking but always have time to enjoy themselves and what they do.

The society is fun-loving and inclusive and broad-minded and they have made friendships that are permanent and genuine.

Almost all of the expats that have worked in ASCO Trinidad have stayed and now have local partners and wives.

The weather is also a big plus as most of the expats have come from areas where the weather is inhospitable What do you find special or unique about T&T? It’s a big country in the oil and gas (and other) sectors with state-of-the-art processes, systems and infrastructure while still being an island with warm, friendly and inviting people. It can be exciting, dangerous, engaging, satisfying, tranquil and frustrating all in the same day – it’s got a cosmopolitan people and feel, some of the best food in the world and a place where you are welcomed.

Business Trinidad & Tobago • 75

T&T has appointed Trade AttachĂŠs in both London and Washington and will be making two more appointments in Toronto and New York.

Commercial Attachés Can Help Open New Markets International trade expert Larry Placide explains why the business community is anxious to see a system of commercial attachés set up.

For several years, over several administrations, the business community in Trinidad and Tobago and, in particular, the main business support organisations, have been urging the establishment of a system of commercial attachés by the Government of Trinidad and Tobago.

Qualified nationals, they argue, should be placed at all our country’s external missions with the mandate to seek new business opportunities and promote investment in Trinidad and Tobago. In their view, this support is vital if the local private sector is to effectively penetrate new markets for goods and services and to compete effectively within those markets.

System of Commercial Attachés Various models of commercial representation are possible.

For Trinidad and Tobago, the example of Costa Rica might be most relevant. There, the function is carried out by its trade promotion company, Procomer. Procomer established an office in Port of Spain very soon after the implementation of the CARICOM-Costa Rica Free Trade Agreement and has supported that country’s attempts to gain benefits from the agreement.

These offices are outside the structure of the Foreign Affairs Ministry. Other countries situate commercial representatives within the framework of the Ministry responsible for external relations. In a number of other countries, private individuals are employed in these functions. In others, the representation is fully and entirely handled by the Public Service.

Whatever approach is eventually selected, the business community has stressed the importance of a systematic approach to commercial representation. The individuals chosen should be mid-career, knowledgeable on the technical issues that may arise, have a strong awareness of the business community in Trinidad and Tobago, and be capable of interacting at a reasonably high level at their posts.

T&T’s Ambassador for Trade & Industry, His Excellency Mervyn Assam, last year sought, and received, approval for the placement of four attachés at T&T’s Missions abroad. The decision has been partially implemented with the appointment of Trade Attachés in both London and Washington. Two further appointments are being actively pursued in Toronto and New York. At the Heads of Mission Conference held in Port of Spain in March 2013, Ambassador Assam stressed “the importance of Trade and Investment attachés to bolster the efforts of the Private Sector and to fulfill the strategic objectives of the Government’s Foreign Policy.”

Location of Commercial Attachés In determining where these Commercial Attachés should be situated, consideration would likely be given firstly to cities

where Trinidad and Tobago already has diplomatic representation. In addition, the potential trade benefit has to be demonstrated through either the presence of an existing trade agreement or one being negotiated. The potential investment benefit should be demonstrated either through existing investments, by an investment, or avoidance of double taxation treaty and, finally, consultation would have been held with the domestic private sector.

Based on the heavy structure of our trade with the United States, Larry Placide representation there would be appropriate but it may be argued that Principal Consultant – Miami would be a better site for a Ideas to Business Ltd commercial attaché than Washington, D.C. This apart, Latin America and the Caribbean should be a particular focus.

Latin America and the Caribbean receive approximately 14 per cent of our country’s exports.

Apart from the CARICOM integration movement, Trinidad and Tobago has trade agreements with Cuba, Costa Rica, Colombia, the Dominican Republic and Venezuela. Taking into consideration the presence in Cuba of a Trade Facilitation Office, it is suggested that Costa Rica (our only representation in Central America) and Jamaica receive Attachés as well. The latter would also have responsibility for the Dominican Republic in the absence of a Trinidad and Tobago diplomatic mission in that country, an eventuality that should be swiftly remedied.

Furthermore, we must have representation in the faster growing economies. Brasil remains a high performing economy with huge potential and an attaché should be established there, especially as Brasilia provides easier access to northern Brazil where business possibilities may be better than further south. Our High Commission in New Delhi should also receive a commercial attaché. While transportation challenges with Africa impact negatively on goods trade possibilities, the energy sector sees considerable potential in the export of energy services and these efforts should be supported by an attaché in either Nigeria or Uganda.

The Ambassador for Trade has assured that “as soon as the Ministry is able to evaluate the impact of the existing trade attachés, Cabinet will be approached to approve the appointment, in consultation with the Private Sector, of additional attachés in strategic locations.” It is notable, and welcome, that some monitoring and evaluation is envisaged to occur before new Attachés are appointed. The business community will surely monitor very closely any developments in this subject over the coming months.

Business Trinidad & Tobago • 77

Spanish – The First Foreign Language in T&T

Fluency in Spanish can blast open doors and markets for T&T. In this article, the Spanish Implementation Secretariat reveals plans for 2013 and what T&T can offer investors, including a pool of fluent Spanish speakers to aid in the process of conducting business with Latin America and Spain.

Why Speak Spanish?

The Republic of Trinidad and Tobago, a Caribbean nation state located seven miles off the coast of Latin America, is taking steps to leverage its geographic and other advantages by recognising the benefits associated with being able to comprehensively understand and speak Spanish. Fluency in Spanish, or at least the ability to navigate the language while speaking to native speakers, has the potential to blast open doors and markets not fully realised previously.

Nadine Roach Spanish is a language that has increasingly driven trade in our region.

It is also an official language of the United Nations, spoken by nearly Secretariat Officer 500 million persons in this hemisphere alone, and is a gateway language – Secretariat for the Implementation of that will allow Spanish dominant speakers to connect with our nation Spanish (SIS) and its peoples. In a bilingual or multilingual society, where systems and the populace are prepared to work bilingually, investors will find greater personal comfort and market readiness.

With Trinidad and Tobago’s private sector increasingly embracing trade with Latin America and Spain, the country has been working towards making itself a regional gateway or hub between the Caribbean, Latin America, North America and Europe due to its geographical position, which is ideal for tourists and business travelers connecting to destinations from Trinidad & Tobago. As a result, international and regional air links have increased with Latin-based airlines, such as COPA Airlines, opening offices in Trinidad. This has allowed for the provision of alternative routes into and out of Central and South America and the Caribbean instead of first traveling to Miami.

Building on this interest, the governmental initiative of Spanish as the First Foreign Language (SAFFL) will create, and has created, opportunities for this English-speaking nation to expand beyond the traditional markets of CARICOM, North America and the United Kingdom and engage with greater understanding with its Latin American and Spanish counterparts.

SAFFL’s Goals It was in September 2004 that Cabinet approved the SAFFL initiative and the creation of the Secretariat for the Implementation of Spanish (SIS).

This initiative’s goals are to: • Prepare the country through a learning environment to have a better command of Spanish

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Photo: Patricia Lewis

and gain an understanding of the cultures which emerged or have been emerging in Trinidad and Tobago’s society and their resultant societal impact.

• Ensure public awareness of, and support for, the Spanish as the First Foreign Language (SAFFL) initiative SIS is now located within the Ministry of Tertiary Education and Skills Training (MTEST) on Level 17 at the International Waterfront Complex, Port of Spain, Trinidad. It is making inroads to revitalise itself and the initiative after being transferred between various ministries. At the time, this instability unfortunately hindered the forward movement of the SAFFL initiative and the SIS. Role of the Secretariat The Secretariat was created to: • Offer guidance to both public and private sector institutions with regard to setting up programmes to promote Spanish-learning and the creation of immersion environments.

• Compile a substantive database on local providers including but not limited to language learning institutions, specific courses, materials, language learning tools and translation services which are available.

• Drive the initiative in the public sector.

• Provide practical guidance by way of policies designed to encourage and simplify the implementation of the initiative.

• Conduct research into Spanish proficiency, current learning opportunities and historic, locally-based Spanish communities.

The SIS continues to work on these prescribed goals as it rebuilds capacity and strength, working at a slower pace but progressing.

SIS Projects One significant project, to be restarted in 2013, are free community classes through the Secretariat’s Spanish Language Acquisition Programme (SLAP). This programme has proven itself to be wildly successful and is always oversubscribed due to increased public recognition and understanding of the need to know Spanish.

Some other initiatives include: • An ongoing Spanish Movie Lunchtime series run by the Secretariat to enable the learning of Spanish, culture and histories of various Spanish-speaking nations, and issues related to the Latin world through the medium of films and documentaries.

• Working with stakeholders to help introduce Spanish language, and the culture and music of Latin America and Spain to the public. For example, Venezuelan and Cuban Embassy officials

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In the public sector, ministries and governmental agencies are tasked with setting up or providing programmes that will enhance Spanish learning. lent their support in helping provide educational experiences to children in Laventille and Tobago during stakeholders’ vacation camps.

• Facilitating the sharing of cultural presentations from Latin America to various groups in Trinidad and Tobago.

• Providing various learning resources for MTEST staff members via the Ministry’s internal website. These materials are in the process of being placed on MTEST’s SIS external webpage the educational benefit of the community. The future will also see the publication of a new Facebook and Twitter account for better connectivity and idea/ educational exchanges between the Secretariat and the public.

• Making databases and other resources available to the private and public sector that provide useful information such as cultural and phone etiquette.

• A Bilingual Vocabulary and Situational Booklet produced by the SIS has continuously been made available to stakeholders. Other booklets will be offered in 2013.

• Outreach programmes to schools have periodically taken place in which children and their teachers are provided with interactive and informative presentations.

The SIS is continuing to revitalise, augment and grow its programmes to maintain and fulfill its initial goals for the implementation of the SAFFL initiative.

Teaching Spanish The nation’s private sector language schools have been working hard to assist in the change that the SAFFL initiative requires. One language school, for example, has signed a Memorandum of Understanding with a university in Venezuela and a language school from Curacao to help co-ordinate programmes and research in order to amplify acquisition development.

There are a few private kindergarten, primary and secondary schools, in which courses are taught in both an English and Spanish mix. This combination serves to facilitate a more rapid acquisition of the Spanish language.

In many primary schools, Spanish is taught as a subject.

At secondary level, Spanish is compulsory from Forms 1 to 3 and optional from Forms 4 to 6. At the university level, some degree programmes require Spanish in order to graduate.

According to the Ministry of Education, there are approximately 60,000 students in any given year studying Spanish in the nation’s schools, excluding colleges and universities.

In the public sector, ministries and governmental agencies are tasked with setting up or providing programmes that will enhance Spanish learning. Many also include specialised

instruction that is tailored to that ministry. The same can be found within the private sector, with some companies either encouraging staff to self-study /self-pay or the organisation pays for the courses.

Business Opportunities For investors looking at T&T, the SAFL initiative added to T&T’s many other advantages presents a persuasive package.

The country’s protected location at the end of the Caribbean archipelago traditionally spares this twin island Republic from hurricanes. As a result, the productivity and production losses and increased expenses associated with destructive violent weather are reduced or non-existent when compared to other nations seasonally hit by these damaging storms.

Employment and business prospects which can be developed are diverse, and include direct language involvement; tourism expansion; conferences; event planning and management; manufacturing; import and export; film and entertainment; food processing; and printing and packaging.

Many entrepreneurial businesses have been developed since the SAFFL initiative began such as language schools that serve both the Spanish as a Second Language (SSL) student and that of the English as a Second Language (ESL) learner.

ESL itself has spawned secondary industries with the influx of students from mainly Venezuela and other Latin American nations. Interestingly, students from the French-speaking Caribbean also make their way to Trinidad to learn English.

With these education tourists and other foreign citizens who come to T&T, it has been a natural occurrence that some remain, marry and open their own businesses. Restaurants and catering services with Latin menus have become an intrinsic part of many restaurants’ offerings. This cultural mixing is not new but it has the effect of injecting a neolatinization into the country.

Interpreters/Translators Database As we move towards achieving the vision of Spanish becoming T&T’s first foreign language, it is important to understand that Trinidad and Tobago already has fluent Spanish speakers who aid in the process of conducting business with Latin America and Spain. Many local companies either hire or contract locals who have studied the language or are native speakers due to family linguistic history and /or are foreign native speakers. There has been an increasing number of interpreters and translators who are either self-employed or part of an institution. SIS maintains a growing list of such persons and makes this list and other databases available free of charge to interested individuals and organisations.

Business Trinidad & Tobago • 81

Small Island – Big Achievements Keshorn Walcott

From global banking, Nobel Laureate winners and best ecodestination awards to prestigious mathematics scholarships, Olympic gold medals and smart, beautiful women - for decades, this tiny twin-island state has been winning awards and accolades in many different spheres.

It can boast, for example, of world record-smashing cricketer Brian Lara, 1976 Olympic gold medalist Hasely Crawford, 2001 Nobel Prize winner in Literature V.S. Naipaul, two Miss Universe titles – Janelle Penny Commissiong (1977) and Wendy Fitzwilliam (1998), and Project Runway 2011 winner Anya Ayoung Chee. It can even boast of having the sweetest honey and hottest pepper.

2012 continued a remarkable history of achievements for T&T and topping the list was Olympic gold medalist Keshorn Walcott who was one of the remarkable stories of the London Olympics and also one of the most unexpected upsets. His golden javelin landed at 84.56 metres, a record-breaking throw, making him only the second non-European to take the crown in 100 years of the Olympic Games.

Below is a list of just some of the T&T organisations, individuals and even products that received international or regional recognition in 2012.

- IAAF Male Rising Star award recipient in Barcelona - Outstanding Youth Achiever Award at the 30th Commonwealth Sports Awards for his performances between July 2011 and June 2012 International Cricket Council Awards Sunil Narine - Emerging Player of the Year Central American and Caribbean (CAC) Junior Chess Championships, Puerto Rico T&T Team – 2nd place T&T Medallists Shemilah James (St Ursula’s Primary): U-10 Female (gold) Joshua Johnson (Fatima College): U-12 Male (silver) Javanna Smith (Holy Name Convent): U-16 (bronze) Tyler-Marie Mungal (Bishop Anstey): U-14 Female (bronze) Shannon Yearwood (St Joseph’s Convent, POS): U-12 Female (bronze) Sean Yearwood (Trinity Primary, Pos): U-10 Male (bronze) ACCA – Candel Cuffie First place worldwide in the Association of Chartered Certified Accountants (ACCA) final P4-advanced financial management exam

London Olympics 2012 Medallists Olympic Gold medal – Javelin Thrower Keshorn Walcott Olympic Bronze – Men’s Sprint 1/8 finals - Cyclist Njisane Phillip Olympic Bronze – Men’s 400 metres - Sprinter Lalonde Gordon Olympic Bronze – Men’s 4 × 400 m relay relay- Lalonde Gordon, Jarrin Solomon, Ade Alleyne-Forte, Deon Lendore Olympic Bronze – Men’s 4 × 100 m relay - Keston Bledman, Marc Burns, Emmanuel Callender, Richard Thompson Swimmer George Bovell III Bronze medal for swimming – 2012 World Championships in Istanbul

Rhodes Scholar – Cornelius Keron Neale Winner of the 2013 Commonwealth Caribbean Rhodes Scholarship tenable at Oxford University

Keshorn Walcott – Javelin crown: 14th IAAF World Junior Track and Field Championship in Barcelona - Four-time winner of the Boys’ Under-20 Javelin title Central American and Caribbean (CAC) Junior Track and Field Championships in El Salvador

Artiste – Stephon Gabriel 1st place winner in the World Bank’s Voices4Climate

Author – Earl Lovelace Recognised at the Caribbean-Canadian Literary Awards at the University of Toronto Teacher – Neal Lutchme Singh Recipient of the 4th annual Sloan Awards for Excellence in Teaching Science and Mathematics (one of seven recipients).

Singh is a Trinidadian teacher based in New York

Law Student – Russell Warner Best Defense Counsel - International Criminal Court Mooting competition, Hague, Netherlands

Caribbean Advanced Proficiency Examination (CAPE) for 2012 T&T won eight of the nine regional top awards for outstanding performance, including: CAPE School of the Year – St Joseph’s Convent (St Joseph) Most Outstanding Candidate Overall in the region – Melissa Persad, St Joseph’s Convent (St Joseph) Most Outstanding Candidate in Business Studies – Victoria Bharat, St Joseph’s Convent (St Joseph) Most Outstanding Candidate in Environmental Science – Matthew Rahamut, St Benedict’s College Most Outstanding Candidate in Technical Studies – Brad Bachu, Presentation College, Chaguanas Most Outstanding Candidate in Mathematics – Sitara Persad, Naparima Girls’ High School Most Outstanding Candidate in Natural Sciences – Marcus Belasco, Naparima College Arthur Lok Jack Graduate School of Business Recipient of the MBA Innovation Award for its MBA in Sustainable Energy Management Programme (MBA SEM) from the United Kingdom Association of MBAs (AMBA) First Citizens Bank Bank of the Year 2012 by Banker Magazine Republic Bank T&T’s Best Bank for 2012 by Latin Finance magazine for its size and stability Scotiabank Best Emerging Market Bank 2013 in T&T by Global Finance magazine (4th consecutive year) Infotech Caribbean Ltd – 2012 Microsoft Country Partner of the Year Award for Trinidad & Tobago and 2012 Latin AmericaSupport Partner of the Year Award The 2012 World Travel Award Winners for the Caribbean Coco Reef Hotel (Tobago) - Caribbean’s Leading Hotel for the 4th consecutive year Caribbean Airlines – Caribbean’s Leading Airline Trinidad Moruga Scorpion Pepper Hottest Pepper in the World – according to Chile Pepper Institute Winning Films Rose – 2nd place in the Documentary category of the 2013 FESPACO Film Festival, the prestigious African Film Festival of Burkina Faso Doubles With Slight Pepper – Canadian Genie award for the Best Live Action Short drama Mas Man - The Complete Work – Best Caribbean Film 2012 at International Film Festival in Antigua/Barbuda - Best Documentary Director Dalton Narine – Harlem International Film Festival - Accolades at other international screenings including Lucerne International Film Festival and New York International Film Festival

Loving Life in T&T

British and Canadian companies have a long-standing presence in the Trinidad and Tobago economy and so do their expatriate employees. Writer Sharon Millar finds out why so many end up staying longer than they initially planned.

“Trinidad is a wonderful place to live and is relatively accessible to Europe and Asia and other places we do business,” says Englishman and quantity surveyor Mark Hood. He came to Trinidad in 2002 and worked with local construction firm NH International on several projects. By 2011, Trinidad had became his home base and he founded and became managing director of QSPM Consulting.

“What I love about Trinidad and Tobago is that it’s a country rich in its culture and diversity – from the business-oriented Port of Spain to the laidback beaches of Tobago - its mixture of religions and festivals; the food; the drinks; its world-renowned Carnival; and its larger than life, family-oriented, party-driven people.”

QSPM works with local consultant Peter Morris of Project Management Group Ltd (PMG) on collaborative projects. Mark and Peter also race competitively in local and international sailing regattas.

Sharon Millar Mark’s compatriot Christopher Mayhew, an engineer who currently does contract management with Fluor Daniel South America Ltd, also loves life in Trinidad and finally gave up bachelorhood to take a Trinidadian wife.

But he had settled here even before that. Why? “I’d done a lot of travelling before I arrived here. It was not as if

this was the first place that I had lived. So I’d seen the world so to speak and I didn’t feel there was anything out there that could give me a better quality of life.”

Chris is an avid diver who has explored the Australian Barrier Reef, dived the Red Sea, and the famous Belizean Blue Hole. He thinks diving in Speyside, Tobago, offers a premier experience for the serious diver.

“Speyside has world-class diving reefs out there. There are very few things that I have seen on other larger, more famous dives that I have not seen in Speyside. I know it very well, I’ve dived it many times. It’s world-class and beautiful. And here in Trinidad, it’s on your doorstep.”

Gary and Sharon Hepburn moved to Trinidad in mid-2011 from Nova Scotia, Canada. Gary is the Director of Academic Programming and Delivery with UWI Open Campus. They found the posting via the Internet and, with two young teenagers in tow, arrived in Port of Spain open to the idea of a completely different experience “We really did come to it with no preconceptions. We were fairly open and the country met all our criteria for a reasonable standard of living and education. It’s been good. A learning experience but lots of good energy.”

How has the family settled?

“The kids came to a Canadian curriculum school which is a fairly transient school. The student body is accustomed to people coming and going so the kids were able to fit in and settle down quickly. And we were really pleasantly surprised to find such a high level of extracurricular support available in the larger community. Our daughter is a keen dancer and she was able to find a very high level studio to dance with. We noticed the same thing with our son who plays football and guitar. His coach, Dion La Foucade, is a former national player and an internationally certified youth coach. The level of coaching available is very high. We’ve had a similar experience with our Photo: Michelle Jorsling

Business Trinidad & Tobago • 85

“I have taken the opportunity to learn how to sail since I’ve been in Trinidad… I have also been on some spectacular hikes… And I’ve recently started taking horse riding lessons in a gorgeous, secluded valley in Santa Cruz.”

- Susan Curtis, Deputy High Commissioner, British High Commission. son’s guitar coach. Sure, you can get extracurricular coaching in Canada, but to have easy access to such high level coaches would certainly not be the norm. You’d usually have to be at the high end to get into those slots.”

Do they lime with Trinis or ex-pats?

“Socialising is easy. We have friends in the ex-pat community but we’ve found it easy to make local friends and we see a lot of them. We’ve learnt to lime pretty easily.”

Liming is a term that ex-pats learn quickly. It’s the easy, shoot-the-breeze, casual socialising that takes place in private homes, on the beaches, in boats down the islands, in river cooking expeditions. Often associated with home entertaining, it’s the one thing that expats comment on time and time again. Everyone likes to do it. And those who arrive not understanding the idea behind “a lime,” learn very quickly that “liming” is the social grease that runs the country.

Terry Fenwick is a football coach; he’s been in Trinidad since 2001. Initially he arrived on the recommendation of exEnglish soccer coach Sir Bobby Robson, and signed a oneyear contract with local football team San Juan Jabloteh. After that stint he was hooked. For 13 years his interest in youth and development has kept him here.

“I formed my own club, the Football Factory. At the moment, we coach 80 or 90 kids three days a week. We’re backed by the English Football Association and the British High Commission. It’s what motivates me; making a difference in the lives of the youth. To give you an example, Atulla Guerra, one of our players, is now playing at the national level. Both of his brothers died in gang violence. Football changed the course of his life.”

It’s clear that Terry loves the country and the people.

“The people are lovely and want to get on, there’re very social. Trinidad is very beautiful – sometimes I think locals don’t recognise how beautiful. Yes there are some social issues, but aren’t there everywhere? Football is a great leveller.

I have kids playing from different backgrounds but once they put on that shirt, they’re all playing together.”

What does he do for entertainment?

“I go to MovieTowne. And I’m a golfer so I play a lot of golf on the Moka Golf Course. And I love down the islands. In fact, I’d have to say that’s my favourite thing to do. Go down the islands.”

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Susan Curtis is the deputy High Commissioner with the British High Commission. She’s been here since October 2010.

“I came with an open mind – I didn’t have any particular expectations. I have worked in 23 different countries around the world, but had never visited the Caribbean before, so I was keen to make the most of whatever T&T had to offer.

There is certainly plenty to do here, as long as you make a bit of an effort. I like my entertainment to involve either good food and wine, or warm sunshine and Mother Nature, and T&T caters for all of that – so I’m very happy. I have also been to quite a few venues on the Avenue since I’ve been here – but these days I tend to rotate around a few favourites, like Veni Mangé, Brauhaus, Buzo, or Chaud Café.”

Ariapita Avenue, best described as Port of Spain’s restaurant district, and affectionately dubbed ‘the Avenue,’ is buzzing with activity on most nights with the tempo heating up on weekends. A walk along ‘the Avenue’ offers up several chic watering holes as well as sophisticated art galleries, and even the occasional performance art – Project Runway 2011 winner Anya Ayoung-Chee staged a fashion show on a flatbed truck on the Avenue.

Has Susan taken up any hobbies since she’s arrived here?

“I have taken the opportunity to learn how to sail since I’ve been in Trinidad – at TTSA (Trinidad & Tobago Sailing Association) in Chaguaramas. I’m still a beginner, but I love any chance to get out on the water - sailing, racing, or just liming. I have also been on some spectacular hikes, including from Blanchisseuse to Paria; wading neck-deep through the Guanapo gorges; and swimming beneath various waterfalls.

And I’ve recently started taking horse riding lessons in a gorgeous, secluded valley in Santa Cruz.”

Trinidadians and Tobagonians take it for granted that they are friendly and welcoming. Are we as friendly as we say?

“This is the first overseas posting I’ve had where I have more local friends than expat friends, so that has to be a good sign. I have met some genuinely wonderful people here, who have made it easy for me to feel at home. My husband and I got married here in Trinidad last year (at the stunning North Deck in Paramin), and lots of family and friends flew in from all over the world to celebrate with us. That was an unforgettable experience – in golden sunshine, overlooking the glistening blue seas, surrounded by forest, with a toucan far above our heads. Pure magic!”

Business Trinidad & Tobago • 87

BUSINESS T&T USEFUL INFORMATION

Business Trinidad & Tobago • 89

STOCK MARKET The world economy sputtered in 2012. At home, the Trinidad and Tobago economy (GDP) was estimated to have grown by 0.7% in 2012 as per preliminary Central Bank of Trinidad and Tobago statistics. Inflation for 2012 was estimated at 6%, even though there were spikes as high as 15% during the year.

Net International Reserves as at December 2012 were US$9.2 billion, a healthy 10.5 months of import cover. Unemployment ended the year at 6%. Throughout the year there was significant excess liquidity ($4 billion - $5 billion) in the banking Wayne Iton system, loan demand was sluggish and General Manager interest rates were relatively low.

Trinidad & Tobago In the Caribbean, only the Dominican Stock Exchange Republic (4%); Guyana (3.7%); Suriname (4%) and the Bahamas (2.5%) are projected to record meaningful growth in the Caribbean. All the other island economies are negative or flat with Barbados, Jamaica and the Eastern Caribbean Currency Union (ECCU) all saddled with very high public debt/GDP ratios.

THE MARKET TTSE’s First Tier Market Given this backdrop, the TTSE’s market performance was respectable. Traded volume for 2012 was 50.7 million shares.

When 2011 volumes were adjusted for a large one-off transaction, there was a 63% decrease in volume. Traded value of $746 million represented a 20% decrease after adjusting for 2011’s one-off transaction. The total number of transactions for 2012 was 8,778; a 4.6% decrease from 2011.

The Composite Index ended the year at 1,064.98 points, up 5.14%. The All T&T Index ended the year at 1,694.27 points, up 15.50% and the Cross Listed Index (Jamaica and Barbados shares) ended the year at 56.33 points, down 19.54%.

A noteworthy feature of the market in 2012 was the material dividend yield of some stocks ranging from 0 – 4.73% for an average of approximately 3%. This average yield compared very favourably with yields in the banking sector.

The Second Tier Market was inactive. The Mutual Fund Market had 61 trades with a volume of 189,150 valued at $3,638,402.00.

Volume was up 99% and value 125% respectively on 2011’s figures.

Government (GORTT) Secondary Bond Market The market performed well during 2012. The total number of transactions was 97, up 111% from 46 in 2011. There were trades in every month of the year. Total volume was 1,381,533,000 up 1,563%. Total value was $1,653 million, up 751%.

Corporate Bond Market There are only two bonds listed in this market. However, there was no trading during the year.

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US-Dollar Market This market was launched in August 2011 with the listing of Sagicor’s US-Dollar preference shares. Trading and settlement are conducted in US dollars. We proudly report that there were 12 trades during the year; with a volume of 584,000 shares valued at US$671,600. This is an encouraging development.

Caribbean Exchanges Network (CXN) The CXN is an initiative to link the Barbados, Jamaica and Trinidad and Tobago Exchanges, which would allow a broker from any of the three markets to trade on any market subject to regulatory approval. It was anticipated that the CXN would be operational in 2012. This did not happen. Without venturing to provide a new date, I am optimistic regarding a start up in 2013.

INSTITUTIONAL DEVELOPMENT Our new Trading (Global Vision) and Settlement and Registrar (Depend) systems are now fully embedded and operating with optimal efficiency.

The TTSE has new Articles of Amendment and a new By-Law No. 1, which resulted in the cancellation of “A” and “B” shares and the issuance of new common shares in April 2012. The fundamental change was the introduction of a single class of common shares. Each existing “A” share (owned by brokers) was converted to 11,040 common shares, and each “B” share (owned by listed companies) was converted to 11,200 common shares, resulting in 1,545,600 issued common shares which are freely transferrable.

Another major market development in 2012 was the passage of The Securities Act, 2012, which replaced the Securities Industry Act, 1995. This new Act ensures that T&T is compliant with the requirements of the International Organization of Securities Commissions (IOSCO). IOSCO is recognised as the international standard setter for securities markets, and is the primary international co-operative forum for securities market regulatory agencies.

LOOKING AHEAD IN 2013 2013 began positively with the listing of 204 million units in the CLICO Investment Fund (CIF) on January 7th, 2013. The market capitalisation of the fund was $5.1 billion. We expect that the First Citizens Group’s initial public offer (IPO) will be concluded by the end of May 2013, with the listing to follow shortly thereafter. Indications are that there could be at least two more offers in the market before the end of the year.

The SME market is yet to have its first listing, but work continues to realise this objective. All in all we are excited by the prospects for the market in 2013.

Listed below are the seven brokers licensed to operate in T&T: AIC Securities Ltd Bourse Brokers Ltd Caribbean Stockbrokers Ltd First Citizens Brokerage and Advisory Services Ltd Republic Securities Ltd Scotia Investments Ltd West Indies Stockbrokers Ltd

PORT UPDATE Humming with activity, T&T’s ports are upgrading, expanding and delivering improved service. New ports are also being planned to serve the needs of the new plants and industrial estates now in the pipeline.

PORT OF PORT OF SPAIN T&T’s largest port, the Port of Port of Spain, is delivering improved service and strengthening relationships with all stakeholders. It launched its new world-class terminal operating system, NAVIS SPARCS N4, at the end of May 2012. The system is used for receiving, storing, and retrieval of containers as well as billing. The IT department has held training sessions on the use of the system for brokers, agents, truckers/ hauliers and Port employees. The port has also rebranded and redesigned its website, giving a more modern, up-to-date look, and providing customers with direct access to the NAVIS system.

The Port’s Preventive Maintenance programme was successfully managed in 2012 to achieve key performance indicators for various pieces of equipment. In addition, the crane control system was upgraded with a new programmable control system (PLC) that improved the safety and efficiency of the crane. A new preventive maintenance workshop was completed and commissioned into service. The new workshop provides a covered workspace to allow repairs to be carried out no matter the weather conditions. A new Cummins QST30 engine was procured, installed and commissioned into service on this crane. Two new empty container handlers (ECH’s) were also commissioned.

Future Plans 2013: For the year ahead, PPOS intends to further strengthen communication with stakeholders, and to raise the standards of customer service and satisfaction to higher levels. Projects for 2013 include: • Provision of an additional 500 ground slots at Shed 9 enabling the Port to handle 500,000 TEUs (20-foot equivalent units) per annum, due to increased storage capacity.

• Improving performance at the Gate side, to a target of 40 minutes; and on the Vessel side, to a target of 25 berth moves per hour and 17 crane moves per hour (to be achieved in the first quarter of 2013).

• STS002 Crane – Upgrade of the crane control system with a PLC System to improve safety and efficiency.

• Hiring of additional technical staff, mechanics and electricians to fill existing vacancies, thereby improving production.

• Upgrade of telephone service to ensure efficient and uninterrupted communication.

• Continuous training for internal staff and external stakeholders regarding the use of NAVIS. • Quarterly Stakeholders’ Forum to encourage interaction and feedback – which would assist in improving the service and satisfaction delivered.

PORT POINT LISAS Port Point Lisas handles approximately 45 per cent of the country’s container cargo and 90 per cent of break bulk cargo (goods that don’t come in containers). It also handles about 60 per cent of local manufacturers’ goods for export.

Expansion plans: The Port of Point Lisas is approaching maximum capacity and will be expanding to take advantage of three developments that will revolutionise global trade - increasing vessel sizes, rapid expansion of Latin American economies, and the expanded Panama Canal in 2015 and consequent changing trade lanes. The expansion of the Port will be on a phased basis, with the first phase to be completed by the end of 2015 with the construction of two additional berths. Additional berths will be constructed in subsequent phases as demand increases.

GALEOTA PORT Located in the oil rich community of Mayaro/Guayaguayare, the Galeota Port is expected to revitalise Trinidad’s south east coast. The new, modernised and multi-purpose facility will cater specifically to the offshore needs of the exploration and production (E&P) operators in that area.

The Port, which is being constructed by National Energy Corporation of Trinidad and Tobago Ltd (NEC) at a cost US$80M, will be built in two phases. Phase 1 will comprise a 200 metrewide turning Basin with a depth of 7.6 metres and four berths with the following lengths: 102 metres, 104 metres and 148 metres.

The facility will provide the following services: • Rig supply operations • Rig/Boat repairs • Modular stacking of deck cargo • Marshalling area for storage • Maintenance and Fabrication • Tank farm storage for drilling muds • Waste management facilities and • Delivery of material by sea to/from Galeota A fifth berth will be utilised by the Trinidad and Tobago Coast Guard to provide maritime security for cargo entering and exiting the facility.

Port Galeota is expected to be completed by December 2013 and presents limitless possibilities which have already caught the interest of several local, regional and international energy companies that were present at the recently concluded Trinidad and Tobago Energy Conference held in January 2013.

AIRPORTS AUTHORITY OF TRINIDAD AND TOBAGO The Airports Authority will open its North Aviation Business Park in 2013, which it is promoting as an excellent location for companies seeking to access South America and the Caribbean.

The park is zoned for a four star airport hotel, retail shopping, entertainment, offices, warehousing, manufacturing and a Maintenance Repair and Overhaul Facility.

Plans and Projects in 2013/2014: A.N.R. Robinson International Airport – Tobago: • Construction of a new domestic terminal • Construction of a new international terminal Piarco International Airport: • Construction of a new domestic terminal • Start of construction of a new food court at the North Terminal • Opening of a new mixed-use Business Park and invitation for proposals for leasing of space.

Business Trinidad & Tobago • 91

FAST FACTS GUIDE OFFICIAL NAME Republic of Trinidad and Tobago LOCATION The southern end of the Caribbean archipelago: Latitude 10.5° North Longitude 60.5° West TIME ZONE Summer: EST equivalent to GMT – 5 hours Winter: EST + 1 hour, GMT – 4 hours. No daylight savings time in T&T CLIMATE Mean temperatures of 85 degrees Fahrenheit with 60% humidity in the dry season of January to May, and 90 degrees with 75% humidity June to December. Nighttime temperatures can drop to around 70 degrees in the cooler months.

CAPITAL CITY Port of Spain, Trinidad, seat of the national democratic government.

Scarborough, Tobago, seat of the local government body, the Tobago House of Assembly (THA).

POPULATION Estimated population 1.3 million of which 55,000 reside in Tobago.

THE GOVERNMENT Trinidad and Tobago’s government is a parliamentary democracy. The head of state is the President, who is elected by an Electoral College of members of the Senate and House of Representatives for a five-year term. Executive power, however, is vested in the Prime Minister and Government following elections every five years. Citizens of Trinidad and Tobago must be 18 years or older to be eligible to vote.

LEGAL SYSTEM The legal system is based on common law and statutes. The judicial system comprises Magistrates Courts and the Supreme Court, which comprises the High Court and the Court of Appeal.

There is a separate Industrial Court that deals with most labour matters. The Judicial and Legal Service Commission appoints judges to the Supreme Court. Final appeal is to the Privy Council in England, but consideration is being given to replacing the Privy Council with the Caribbean Court of Justice, inaugurated in April 2005 with headquarters in Port of Spain. www.ag.gov.tt/; www.legalaffairs.gov.tt/; www.moj.gov.tt THE ECONOMY Trinidad and Tobago is the most diversified and industrialised economy in the English-speaking Caribbean. Following 14 years of steady growth, the T&T slowed down in 2009 as, along with the rest of the world, it felt the impact of the international financial crisis. Recovery is now in sight. The Central Bank of Trinidad & Tobago estimates that real Gross Domestic Product (GDP) grew by 0.4% in 2012 and forecasts that the economy will grow by 2.5% in 2013. Inflation averaged 9.3% in 2012 and the Central Bank forecasts it will fall to 5.8% in 2013. Unemployment was about 5.4% in 2012 and is expected to remain low at 5% in 2013. Gross official reserves are forecast to remain at a healthy 10 months of import cover in 2013.

Source: Central Bank of T&T www.finance.gov.tt/; www.centralbank.org.tt/; http://www.mphe.gov.tt/

92 • Business Trinidad & Tobago

ETHNIC PROFILE 35.4% East Indian descent 22.8% Mixed descent

34.2% African descent 1.4% Other (European, Arab and Chinese)

OFFICIAL LANGUAGE English (Spanish is being promoted as Trinidad and Tobago’s first foreign language) CURRENCY Trinidad and Tobago dollar tied to the US$ and floating at US$1 = TT$6.43 Notes: $1, $5, $10, $20, $50 and $100 Coins: 1, 5, 10, 25, 50 For daily Foreign Exchange Rates: www.central-bank.org.tt/ BUSINESS DRESS CODE Trinidad is more formal with lightweight suits worn, but in Tobago jackets are optional except on formal occasions.

BUSINESS HOURS Generally 0800 to 1600 Monday to Friday, retail outlets 0800 to 1600 except at Malls where opening time is 1000 and closing is 1900.

MAJOR BANKS The major banks have their main corporate offices in Port of Spain with branches in strategic locations throughout Trinidad and Tobago. They maintain international links through their affiliates in North America and Europe.

• • • • • • • •

Bank of Baroda (Trinidad only) CIBC FirstCaribbean International Bank Citi (Trinidad only) First Citizens Intercommercial Bank (Trinidad only) RBC Royal Bank Republic Bank Scotiabank

Banking hours are 0800 to 1400 Monday to Thursday, 0800 to 1200 and 1500 to 1700 Friday. Mall branches: usually 1000 – 1700. All banks have Automatic Banking Machines (ABMs) and major shopping malls contain either full service branches or ABMs. The ABM banking system features LINX, which enables clients to access accounts from any ABM regardless of agency in the country. LINX can also be used to make purchases at retail outlets throughout the country. ABMs also offer access to advance cash withdrawals for VISA, MasterCard and VISA Plus clients.

TRAVELLER’S CHEQUES AND CREDIT CARDS Accepted in most establishments. Customs & Excise Division accepts cash only. Other Government agencies may accept cash or LINX only.

DUTY FREE SHOPPING Available at the Cruise Ship Complex, Piarco and A.N.R Robinson International Airport (formerly known as the Crown Point International Airport), Apadoca’s at Crews Inn for boats leaving the country, and selected downtown Port of Spain stores.

FAST FACTS GUIDE TAXATION Tax Departure Tax

Hotel Tax Hotel Room Tax Value Added Tax (VAT) Income Tax Corporation Income Tax Insurance Premium Tax Withholding Taxes

Rate TT$200.00 is included in the cost of the airline ticket (local currency only).

Citizens over the age of 60 years old are exempted 10% service charge 10% service charge 15% on consumer goods and services 25% 25% On Chargeable Profits 15% on Long-term Insurance Business 6% Varies

TELEPHONE 1 (868) + seven digit number ELECTRICITY 115 volts / 230 volts (+/- 6%) and 60Hz ROAD SYSTEMS Driving is on the left side of the road.

DOMESTIC FERRY SERVICE Domestic Fast Ferry Service: T&T Express and T&T Spirit and conventional, slower ferry – the Warrior Spirit - transport passengers and cargo between the two islands. Ticket can be purchased on the same day or in advance at various Travel Agencies and Internet Cafes in Trinidad or Tobago.

• Adult passengers on the Fast Ferry service TT$50 oneway and return TT$100 • Children: TT$25 one-way and return TT$50 • Minors 3 years & under and senior citizens of T&T 65 years & over travel free.

• Ferry passengers with private cars costs TT$150 one way and TT$250 return trip.

(Where there is no charge applied, a ticket is still required for every passenger. Senior citizens are still required to present a photo ID to verify age and nationality. Personal photo identification is needed when traveling between isles and when purchasing tickets for the ferry and airline services.) http://www.patnt.com for further information.

WATER TAXI SERVICE The Water Taxi sails from San Fernando to Port of Spain and back with scheduled sailing times, Monday to Friday. Tickets are TT$15 one way and can be purchased at the Water Taxi Terminals located at Lady Hailes Avenue in San Fernando or the Cruise Ship Complex in Port of Spain. Free parking is available at both ports. On arrival at the Port of Spain port, passengers can use PTSC’s shuttle service which costs TT$3 through the city.

For further information visit: www.nidco.co.tt or www.facebook. com/watertaxiservice Or call 624-5593 Customer Care Hotline: 800-4WTS (4987) AIRPORTS Piarco International Airport (POS) - 17 miles (27 km) from Port of Spain.

A.N.R Robinson International Airport (TAB) - 7 miles (10km) from Scarborough.

AIRLINES Piarco International Airport is serviced with scheduled flights

from American Airlines, British Airways, Caribbean Airlines (National Carrier), United Airlines, CONVIASA, WESTJET, COPA Airlines, LIAT (Regional Carrier) and Surinam Airways, in addition to charter operators such as AERO TUY, SUNWING and ESTELAR. (Updated March 14th 2013) A.N.R Robinson International Airport, formerly known as the Crown Point International Airport, also sees scheduled flights from British Airways, Caribbean Airlines, Condor Airlines, LIAT, Monarch Airlines and Virgin Atlantic. For more information on scheduled dates and times log on to www.tntairports.com The domestic “airbridge” is operated by Caribbean Airlines based in Trinidad, flying regular daily flights between 6am and 10pm to Tobago. The domestic fare for an adult is TT$150 single and TT$300 return. Internet bookings are available at www.caribbean-airlines.com.

EMERGENCY SERVICES Port of Spain General Hospital, San Fernando General Hospital and the new Scarborough General Hospital. Roxborough Hyperbaric Facility (RHF), the Dive Chamber is the only recompression chamber available at the Roxborough Medical Clinic in Tobago. For more information about the facility you can call 660-5155 Emergency Service

Telephone Nos: Ambulance/ Trinidad Emergency Relief 811 Tobago Emergency Relief 211 Coast Guard: 634-4440 Crime Stoppers 800-TIPS (8477) Fire 990 Police/Rapid Response 999 The Office of Disaster Trinidad: 800-ODPM (6376) Preparedness and 640-1285; 640-8905 Management (ODPM): 640-8653; 640-6493

Tobago: 660-7489

MEDIA Daily Press includes: Trinidad Express, Trinidad Guardian and Newsday.

Bi-weekly: TnT Mirror.

Weeklies: Tobago News, Catholic News, Bomb, Blast, Metro, Showtime, The Independent, The Weekend Heat, The Probe, Sunday Punch and Newspaper Direct Trinidad and Tobago.

Monthly: Trinidad and Tobago Review, Easterly and Westerly.

Local television stations: CCN TV-6 (Channels 6 & 18 in Trinidad and Channel 19 in Tobago), Cable News Channel CNC3 (Channels 12 & 14), CNMG (Channels 9 and 13), Gayelle Television (Channels 23 & 27), National Carnival Commission (NCC TV4 (Channels 4 &16), Synergy TV (Channel 33), WINTV (Channels 37 & 39) and Tobago Channel (Channel 5 Tobago only).

Local television programming via cable television: ACTS (Channel 9 Flow & 112 Blink) CCN TV-6 (channel 5 Flow & 100 Blink), Cable News Channel CNC3 (Channel 3 Flow & 104 Blink), CNMG (Channel 6), Gayelle Television (Channel 7 Flow & 106 Blink), Islamic Broadcast Network - IBN (Channel 8), ieTV (Channel 1 Flow & 116 Blink), NCC TV4 (Channel 4 Flow & 103 Blink), The Parliament Channel (channel 11), Synergy TV (Channel 15 Flow, 108 Blink), WINTV (Channel 12 Flow & 110 Blink), WI Sport (Channel 14).

There are about 36 radio stations operating on the FM band and two on the AM band (530 AM and 730 AM).

Business Trinidad & Tobago • 93

TRINIDAD CONTACT INFORMATION The American Chamber of Commerce of Trinidad and Tobago (AmCham) 62A Maraval Road, Newtown, Port-of-Spain Tel: (868) 622-4466; 622-0340 Fax: (868) 628-9428 inbox@amchamtt.com www.amchamtt.com

Central Statistical Office (CSO) National Statistics Building 80 Independence Square Port of Spain Tel: (868) 623-6495/7069 Fax: (868) 625-3802 info@cso.gov.tt www.cso.gov.tt

Ministry of Energy and Energy Affairs Tower C - Energy Trinidad and Tobago International Waterfront Centre #1 Wrightson Road, Port of Spain Tel: (868) 623-6708 or (868) 62-MOEEI Fax: (868) 625-0306 info@energy.gov.tt www.energy.gov.tt

Association of Caribbean States Ernst & Young Building 5-7 Sweet Briar Road, St. Clair, Port-of-Spain Tel: (868) 622-9575 Fax: (868) 622-1653 mail@acs-aec.org www.acs-aec.org

Employers’ Consultative Association of Trinidad and Tobago (ECA) #17 Samaroo Road Aranguez Roundabout North Aranguez Tel: 868-675-9388, 868-675-0273 or 868-675-5873 Fax:868-675-4866 Info@ecatt.org www.ecatt.org

Ministry of Finance and the Economy Level 8, Eric Williams Finance Building Port of Spain Tel: (868) 627-9700/9703/9695 Fax: (868) 627-5882 comm.finance@gov.tt www.finance.gov.tt

Association of Real Estate Agents (AREA) Suite A4, Kencita Court 76 Picton Street, Newtown Port-of-Spain Tel: (868) 628-9048 Fax: (868) 628-9049 area-tt@tstt.net.tt www.areatt.com Association of Trinidad and Tobago Insurance Companies (ATTIC) 9 Stanmore Avenue, Port-of-Spain Tel: (868) 624-2817, 625-2940 Fax: (868) 625-5132 mail@attic.org.tt www.attic.org.tt exporTT Ltd Head Office 151B Charlotte Street, Port-of-Spain Tel: (868) 623-5507; 624-3932 Fax: (868) 625-8126; 624-3919 info@exportt.co.tt www.exportt.co.tt Caribbean Association of Industry and Commerce (CAIC) P.O. Box 6541 TT Post, Maraval Trinidad & Tobago Tel: (868) 628-4478 Fax: (868) 622-8936 caic.admin@gmail.com www.carib-commerce.org Central Bank of Trinidad and Tobago Eric Williams Financial Plaza, Independence Square P.O. Box 1250, Port-of-Spain Tel: (868) 625-2601/4921/4835/0121 Fax: (868) 627-4023 info@central-bank.org.tt www.central-bank.org.tt

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The Energy Chamber of Trinidad and Tobago Suite B2.03 Atlantic Plaza, Atlantic Avenue Point Lisas, Couva Tel: (868) 6-ENERGY, 679-6623,679-1398 Fax: (868) 679-4242 execoffice@energy.tt www.energy.tt invesTT The Investor Sourcing & Facilitation Division The Atrium Don Miguel Road Extension El Socorro Tel: (868) 638-0038 Fax: (868) 675-9125 info@investt.co.tt www.investt.co.tt/ Fashion Association of Trinidad & Tobago Tel: (868) 627-6975 fashionassociationtt@gmail.com Institute of Banking and Finance of Trinidad and Tobago 16 Gray Street, St. Clair PO Box 1259, Port of Spain Trinidad and Tobago Tel: (868) 622-0282, (868) 628-2944 Fax: (868) 628-9718 info@ibaf.org.tt www.ibaf.org.tt

Ministry of Food Production St Clair Circle, St Clair, Port of Spain Tel: 622-1221-5, 622-5481-7 Fax: (868) 622-8202 www.agriculture.gov.tt/foodproduction/ Ministry of Foreign Affairs Level 10-14 Tower C Waterfront Complex 1A Wrightson Road, Port of Spain Tel: (868) 623-4116 Fax: (868) 624-4220 website@foreign.gov.tt www.foreign.gov.tt Ministry of Health #63 Park Street Port of Spain Tel: (868) 627-0010-17 Fax: (868) 623-9528 suggestions@health.gov.tt www.health.gov.tt Ministry of National Security Work Permit Secretariat Temple Court 52-60 Abercromby Street Port of Spain Tel (Pbx): (868) 627-1033, (868) 625-2864 or (868) 624-0291 Ext: (1) 3000 - 3010 Fax: (868) 624-2342 Application Form info@mns.gov.tt www.nationalsecurity.gov.tt Ministry of Public Administration Level 7, National Library Building Corner Hart and Abercromby Street Port of Spain Tele: (868) 625-6724, 623-7122/8578 Fax: (868) 623-6027 www.mpa.gov.tt

Ministry of Trade, Industry and Investment Nicholas Towers, Level 11-17 63-65 Independence Square Port-of-Spain Tel: (868) 623-2931-4, Fax: (868) 627-8488; 627-0002 info@tradeind.gov.tt www.tradeind.gov.tt The National Information and Communication Technology Company Ltd (iGovTT) Level 1-3, Lord Harris Court #52 Pembroke Street Port of Spain Tel: (868) 627-5600 Fax: (868) 624-8001 igovtt@gov.tt www.igovtt.tt Office of Disaster Preparedness & Management (ODPM) (Trinidad Office) 4A Orange Grove Road Trincity, Tacarigua Tel: (868) 640-1285/8905/8653/6493 Fax: (868) 640-8988 info@nema.gov.tt www.odpm.gov.tt Port of Point Lisas Administration Building Atlantic Avenue Point Lisas Industrial Estate Point Lisas Couva Cargo Handling: (868) 6362202/4388/2137/4006 Port Marine: (868) 636-7678/2132 Fax: (868) 679-2907 plipdeco@plipdeco.com www.plipdeco.com Port Authority of Trinidad & Tobago Administrative Building 1 Dock Road Port of Spain Tel: (868) 623-2901-5 Fax: (868) 627-4945 www.patnt.com Shipping Association of Trinidad & Tobago 15 Scott Bushe Street, Port of Spain Tel: (868) 625-2388 or (868) 623-3355 Fax: (868) 623-8570 om@shipping.co.tt www.shipping.co.tt

Tourism Development Company Ltd (TDC) Level 1, Maritime Centre No. 29 Tenth Avenue, Barataria Tel: (868) 675-7034-7 Fax: (868) 638-7962 info@tdc.co.tt www.tdc.co.tt

Trinidad and Tobago Film Co Ltd Suite 015, Bretton Hall 16 Victoria Avenue Port of Spain Tel: (868) 625-3456 Fax: (868) 624-2683 info@trinidadandtobagofilm.com www.trinidadandtobagofilm.com

Trinidad and Tobago Agri-business Association Unit 13 Freeport Warehouse Complex Eagle Crescent, Mission Road Freeport Tel: (868) 297-8582, 297-8584, 297-8586, 297-8593 Fax:(868) 673-7311 ttabasec@gmail.com www.ttaba.com

Trinidad and Tobago Manufacturers’ Association (TTMA) 42 Tenth Avenue, Barataria Tel: (868) 675-8862 Fax: (868) 675-9000 info@ttma.com www.ttma.com

Trinidad and Tobago Bureau of Standards (TTBS) 1-2 Century Drive Trincity Industrial Estate Macoya Tel: (868) 662-8827 Fax: (868) 663-4335 ttbs@ttbs.org.tt www.ttbs.org.tt Trinidad and Tobago Chamber of Industry and Commerce (TTCIC) Chamber Building, Columbus Circle, Westmoorings or P.O. Box 499, Port-of-Spain Tel: (868) 637-6965-6 Fax: (868) 637-7425 chamber@chamber.org.tt www.chamber.org.tt

Trinidad & Tobago Stock Exchange 10th Floor, Nicholas Tower 63-65 Independence Square Port of Spain Tel: (868) 625-5107, (868) 625-5109 Fax: (868) 623-0089 ttstockx@tstt.net.tt www.stockex.co.tt TTBizLink Ministry of Trade, Industry and Investment Operations Centre Level 9, Nicholas Tower 63-65 Independence Square Port of Spain Tel: (868) 800-4SEW (4739) support.ttbizlink@gov.tt www.ttbizlink.gov.tt

Trinidad and Tobago Coalition of Services Industries Ltd (TTCSI) 45 Cornelio Street Woodbrook, Port of Spain Tel: (868) 622-9229 Fax: (868) 622-8985 info@ttcsi.org www.ttcsi.org The Trinidad Hotels, Restaurants and Tourism Association (THRTA) c/o Trinidad and Tobago Hospitality and Tourism Institute Airway Road, Chaguaramas Tel: (868) 634-1174/5 Fax: (868) 634-1176 info@tnthotels.com www.tnthotels.com

Business Trinidad & Tobago • 95

TOBAGO CONTACT INFORMATION exporTT Ltd E-Teck Mall, Sangster´s Hill Scarborough Tobago Tel: (868) 639-4067/639-2549 Fax: (868) 639-4340 info@exportt.co.tt www.exportt.co.tt Chamber of Industry and Commerce, Tobago Chapter T.E.A.L. Building The Waterfront Scarborough Tobago Tel: (868) 639-2669 Fax: (868) 639-2669 tobagochamber@tstt.net.tt www.chamber.org.tt/ Eco-industrial Development Company of Tobago Ltd (E-IDCOT) Isaac T. McLeod Building.

First Floor, Sislyn Thomas-Craig Road, Cove Eco-Industrial and Business Park, Canoe Bay Road, Lowlands Tobago Tel: (868) 635-2683, 631-COVE; 635-COVE; 660-COVE Fax: (868) 631-COVE, 635-2214 info@e-idcot.co.tt www.e-idcot.co.tt Environment Tobago (NGO) P O Box 503 Scarborough Tobago Tel: (868) 660 7462 Fax: (868) 660 7467 envirtob@tstt.net.tt www.environmenttobago.net The National Emergency Management Agency (Tobago) (TEMA) Fairfield Complex Bacolet Street Scarborough Tobago Tel: (868) 631-CERT (2378) or 660-7489 nematobago@tstt.net.tt www.tema365.com

96 • Business Trinidad & Tobago

The Travel Foundation L.P. 159, Black Rock, Tobago Tel: (868) 635-0032 Contact: Ms. Rosemary Thomas, Project Co-ordinator tftobago@tstt.net.tt www.thetravelfoundation.org.uk Tobago Hotel & Tourism Association Apt. 1 Lambeau Credit Union Bldg., Auchenskeoch Road, Carnbee PO Box 295, Scarborough Tobago Tel: (868) 639 9543 Fax: (868) 639 9543 thta@tstt.net.tt www.tobagohoteltourism.com Tobago House of Assembly (THA) Division of Finance and Enterprise Development Victor E. Bruce Financial Complex 14-16 Wilson Road Scarborough Tel: (868) 635-1203, 635-2989 or 635-1254 Fax: (868) 639-4927 thasec@tstt.net.tt www.tha.gov.tt Tobago House of Assembly (THA) Division of Tourism and Transportation 12 Sangster’s Hill Scarborough Tobago Tele (868) 639 2125 or 639 4636 Fax: (868) 639 3566 contact@visittobago.gov.tt www.tha.gov.tt; www.visittobago.gov.tt Tourist Information Offices Crown Point International Airport Tel: (868) 639 0509 Cruise Ship Complex Scarborough.

Tel: (868) 635 0934